- Nellstar Properties Ltd incorrectly zero-rated construction services for VAT, claiming the work was for residential property, when it was actually a hotel extension and should have been standard rated.
- The FTT found that the company’s director, Mr Smith, likely knew the true commercial nature of the construction and deliberately misapplied the zero-rating.
- Because the conduct was deemed deliberate, HMRC was allowed to apply the extended 20-year time limit for VAT assessments.
- The company’s appeal against the VAT assessments was dismissed.
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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