A trader is assessed to VAT. It disagrees with the assessment. Discussions with HMRC break down. The trader wants to appeal the assessment to the tribunal. However as we all know it would only be able to do so if it were first to pay the tax to HMRC – under the so-called ‘pay first’ requirement – or alternatively to demonstrate successfully that to do so would cause it hardship.
Most traders do one or the other. Hardly any would even think to suggest that the ‘pay first’ requirement is unlawful (and should therefore be struck down). One trader did – Totel – and this is its story.
The story so far
Totel sells mobile phones. In 2006 HMRC denied certain claims Totel had made for input tax recovery and sought also to claw back certain input tax that had...
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A trader is assessed to VAT. It disagrees with the assessment. Discussions with HMRC break down. The trader wants to appeal the assessment to the tribunal. However as we all know it would only be able to do so if it were first to pay the tax to HMRC – under the so-called ‘pay first’ requirement – or alternatively to demonstrate successfully that to do so would cause it hardship.
Most traders do one or the other. Hardly any would even think to suggest that the ‘pay first’ requirement is unlawful (and should therefore be struck down). One trader did – Totel – and this is its story.
The story so far
Totel sells mobile phones. In 2006 HMRC denied certain claims Totel had made for input tax recovery and sought also to claw back certain input tax that had...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
