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• OMNIS ACHIEVES HIGH COURT WIN IN... • Security Demands • North West College Achieves VAT Zero... • VAT on Sports Grounds • VAT on property sold to company's... |
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| OMNIS ACHIEVES HIGH COURT WIN IN TAXI CASE Omnis VAT Consultancy has successfully challenged a decision of the VAT & Duties Tribunal in the High Court. The issue under appeal concerned the difference in liability between the taxi firm acting as agent in respect of on demand work and principal in respect of contract work. The Tribunal agreed that there was a difference between the two arrangements but then went on to say that the “settle” amount deducted on a weekly basis by the taxi firm acting as principal should also be subject to VAT as a separate supply. Omnis appealed and at the High Court hearing in April the judge (Mr Justice Lewison) said that where there is a deduction from amounts paid by the taxi firm to drivers (ie. the £72 “settle”) that deduction cannot be characterised as payment for a separate supply by the taxi firm without “cogent evidence”. It was “impossible”, he said, to see what supply was being made by them to the drivers. He therefore remitted the matter back to the Tribunal to determine the quantum of the settle income which should be subject to VAT as relating to casual work only. This will reduce the amount assessed by HMRC from £153,000 to around £30,000. |
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