In HMRC v GB Housley (FTC/65/2013 – 10 July 2014) the UT ordered HMRC to exercise its discretion to accept evidence for the deduction of input tax.
The taxpayer had failed to supply self-billed invoices in relation to the purchase of scrap metal from four suppliers and HMRC had not allowed the recovery of input tax despite having a discretion to do so (VAT Regulations SI 1995/2518 reg 29).
Having reviewed the extensive correspondence between the parties the UT concluded that HMRC had made no attempt to consider the exercise of the discretion. Furthermore even if HMRC had considered the exercise of the discretion the refusal to exercise it in Housley’s favour was based entirely on the absence of a self-billing agreement between the taxpayer and his suppliers. This was giving too much weight to such an agreement to the detriment of...
