Beware VAT exceptions

I always recall the wise words of former Taxation editor Mike Truman – while we were enjoying some cricket in London: ‘VAT is usually a straightforward tax it’s the exceptions that catch people out.’

Mike could have been thinking about the ridiculous legislation about VAT and food – with the exceptions to zero rating; the exceptions to the exceptions; and the exceptions to the exceptions to the exceptions – but there are many more exceptions that could have been in his mind. For example no VAT is charged on supplies of private tuition in a subject that is ordinarily taught in a school or university with the exception of supplies made by either a limited company or employees of a sole trader partnership or limited liability partnership.

As far as VAT and food is concerned enthusiasts who read the recent First-tier Tribunal...