As an educational supplier, Newnham would have paid VAT on its suppliers’
bills, but not been able to reclaim VAT itself. So the ‘famously poor women’s
college’, as it is referred to in the judgment, opted to set up a company to
build the library that could reclaim the VAT.
The taxman objected to the structure saying that it should be set aside for
tax purposes, but the Law Lords disagreed, saying that it had not been proven
that the college ‘occupied’ the library.
‘The practical physical control of the library premises is in the hands of
the librarian and her staff, who act on behalf of the company.
It is they who have the right to admit or exclude persons from the library
and they do not share this right with the college,’ Lord Hoffman said.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
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