- HMRC appears to be softening its position on VAT top-slicing for Disabled Facilities Grants: several local authority assessments have been withdrawn, including one heading to the First-tier Tribunal, on the basis that top-sliced funds are not consideration for a supply under basic VAT principles.
- The revised HMRC approach is not yet fully consistent across all cases, with some assessments still standing; PSTAX is engaging HMRC to seek a broader resolution.
- A First-tier Tribunal hearing is due on 15–16 September in the Portsmouth City Council case on DFG administration fees, with the key issue whether the fees are standard-rated administration services (HMRC) or VAT-exempt welfare services (PCC/PSTAX).
Source: pstax.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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