VAT – small businesses flat-rate scheme – public house – bar sales and food sales almost equal but food sales higher – on joining scheme appellants selected ‘Pubs’ as main business claiming that bar sales expected to exceed food sales in following year – food sales continued to exceed bar sales – retrospective change of sector to ‘Restaurants’ by HMRC – whether change reasonable – appeal dismissed
VAT – misdeclaration penalty – whether appellants belief that bar sales would exceed food sales constitutes reasonable excuse – held on facts that there was reasonable excuse until first anniversary of appellants joining scheme – appeal allowed in part
Citations:
[2006] UKVAT V19671
Links:
Jurisdiction:
England and Wales
VAT
Updated: 13 October 2022; Ref: scu.244219