Tribunal Rulings Highlight VAT Exemption and HMRC Procedural Missteps in Financial Services Cases

• Performance Leads Limited (PLL) connects people seeking financial advice with independent financial advisers (IFAs) and charges a fee for each lead.
• PLL initially charged 20% VAT on their services, considering them standard-rated advertising.
• PLL realized their services might qualify for VAT exemption as financial intermediary services and claimed back £247,407 in overpaid VAT.
• HMRC argued against the exemption, stating PLL’s services were just advertising and not preparatory to contracts.
• The Tribunal sided with PLL, recognizing their services as genuine intermediary work, qualifying for VAT exemption.
• HMRC was criticized for introducing new arguments after agreeing on legal issues, leading to procedural criticism.
• The case highlights the distinction between standard-rated advertising and exempt financial intermediary services.
• Conservatory Insulations Northwest Limited (CIN) submitted a VAT error correction notice for £54,468, but HMRC lost the paperwork.
• HMRC completed the assessment form but delayed the required senior officer’s countersignature.
• The Tribunal ruled the assessment was made too late, allowing CIN’s appeal and resulting in a loss for HMRC.

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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