In Vehicle Control Services Ltd v HMRC (Upper Tribunal – 8 May) a company (V) operated a ‘parking control’ service for landowners. It did not account for VAT on all of the amounts which it received from motorists. HMRC issued an assessment and V appealed contending that the amounts in question were penalties for contraventions which should be treated as damages for trespass and as outside the scope of VAT. The Upper Tribunal rejected this contention and dismissed the appeal specifically distinguishing the case of Bristol City Council (VTD 17665) which V had cited as an authority on the grounds that in that case there had been a contract between the council and the motorist whereas in this case there had been no such contract. The payments were consideration for the supplies which V made to the landowners.
