Restaurants and takeaways

The recent focus by HMRC on restaurants and fast food businesses across the UK has certainly caused businesses to review their controls and tax costs.  John Hood, Head of Tax Investigations says there are a number of ways to mitigate and minimise any exposure to additional tax including a review of VAT liabilities.

Vaughn Chown, VAT partner, believes the interventions by HMRC should also be taken as an opportunity to review whether supplies of food for takeaway should be zero rated in the light of the recent cases he has taken before the First-tier Tribunal.

Businesses that can demonstrate the supply of food for takeaway is not a supply of catering or purposely sold hot may be able to zero rate their takeaway supplies.  Furthermore, businesses can claim back the VAT overpaid for the past 4 years.

If your clients need assistance with any HMRC enquiry or you believe that your clients may benefit from a review of the VAT liability of their supplies please contact TaxDesk on 0845 4900 509 and ask for John Hood, Head of Tax Investigations or  Vaughn Chown, Head of VAT