Is an organisational activity Business or Non-Business?

HMRC issued Revenue and Customs Brief 10 (2022) in June with regards to whether an organisation’s activity was a Business or a Non-Business Activity. The brief can be accessed here.

What has changed?

A few years after the introduction of VAT, HMRC applied a six-stage test with regards to what constitutes a business activity. This was mainly based on a case heard over 40 years ago called Lord Fisher.

This has now been replaced by a two-stage test as a result of various cases that have been heard in the courts over the past few years.

Source Crowe


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