VAT ruling saves credit card companies £100m
The Court of Appeal has thrown out a Customs & Excise appeal in a decision which could save the financial services industry £100m in VAT payments.
The Court of Appeal has thrown out a Customs & Excise appeal in a decision which could save the financial services industry £100m in VAT payments.
A 1999 VAT Tribunal ruled that services provided by credit card processing company FDR were exempt from VAT after Customs ruled in 1995 that the tax was payable.
But in an embarrasing move for Customs, the Court of Appeal today upheld the Tribunal’s ruling saying FDR did not have to pay the tax.
Estimates indicate FDR alone could save £70m – a sum it risked having to pay to Customs if the decision had gone the other way.
Marc Welby, VAT partner at Ernst & Young, advisers to FDR, said: ‘We are delighted with the result.
‘It is tremendous news for our client FDR, and this decision will also be very welcome to those financial services businesses who outsource services relating to credit, loan and hire-purchase agreements.’
It is understood Customs will now have to review a finance order placed in the 1999 Budget which made the services laible to VAT.
Customs has indicated it is considering a further appeal to the House of Lords.
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article