FTT Rules HMRC Closure Notice Bars VAT Registration: Hairdresser’s Turnover Below Threshold, Appeal Allowed

• The FTT upheld the taxpayer’s appeal against compulsory VAT registration.
• HMRC’s letter after an income tax enquiry was deemed a closure notice, confirming the taxpayer’s turnover was below the VAT registration threshold.
• The taxpayer’s “rent-a-chair” model income was not included in his turnover for VAT or income tax, and this treatment was accepted as the enquiry was closed in his favour.
• The FTT ruled that income tax and VAT treatment must align, and the closure notice was final.
• As a result, the taxpayer should not have been registered for VAT for the relevant period.

Source: claritaxnews.com

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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