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Air conditioning was installed in a restaurant more than six months before it opened. A claim to input VAT incurred by the business was denied on the basis that this comprised a supply of services and the decision was upheld on review. Was the decision correct, and what are the chances of a successful appeal?
HMRC have disallowed the input tax incurred on the supply and fitting of air conditioning in a restaurant because it was outside the six months’ services rule. The restaurant requested an independent review of the case on the basis that this was expenditure on goods rather than services.
However the decision was that this was services and therefore no recovery of VAT was due.
Unfortunately the taxpayer and accountant have done nothing in the three months since the decision and have now asked whether it is worth taking this case to appeal. To my mind they are now out of time and have accepted the decision.
Is there a way around this so as to lodge a late appeal? The accountant believes that their restaurant client sat on the correspondence and was not aware of it.
If a late appeal is possible what do readers...
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