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VAT on Food: Are Brownies, cakes or confectionery?

VAT on Food: Are Brownies, cakes or confectionery?

In 1991 a landmark tax ruling deemed that McVitie’s famous Jaffa cake were actually cakes and not biscuits as assessed by HMRC/VAT; thus zero-rating them for VAT purposes. Now, almost 30 years after this definitive VAT case (is it a cake or a chocolate biscuit?)...
Charitable giving may be vatable

Charitable giving may be vatable

I recently became involved with a situation where HMRC demanded output tax on donations received by a charity. I found this strange, as donations are generally outside the scope of VAT because the money received does not relate to the supply of goods or services. The...
Artificial VAT Assessments

Artificial VAT Assessments

This is a tale of two associated companies and HMRC’s disallowance of nearly £50,000 of input tax, resulting in the VAT officer involved getting a very nice little bonus, so read on….. VAT Trading background Bob Antsy is the sole director of a building company Antsy...
VAT Free Wine

VAT Free Wine

In life the well-known adage ‘there’s no such thing as a free lunch’, is universally accepted as a self-evident truth; but is there such a thing as a free drink? If I make a client who has called it to see me a cup of coffee and give it to them, it’s clearly a free...