HMRC submit that the services were supplied to Mr Malde in his personal capacity in respect of the PLNs. HMRC decided that the input tax was not deductible in Mr Malde’s UK VAT registered sole trader business because the amount claimed does not constitute input tax within the definition of section 24(1)(a) Value Added Tax Act 1994 (“VATA”).
Mr Malde has not satisfied us that the VAT charged by Freeths and claimed as input tax of the sole proprietorship in the accounting periods 06/17, 09/17 and 12/17 is deductible input tax. We conclude that, applying the test in section 24 to our findings of fact, the legal advice was not “used or to be used for the purpose of [the sole proprietorship] carried on or to be carried by [Mr Malde]” and so the VAT charged is not input tax of the sole proprietorship.
Source: bailii.org
