RCB/16/20 VAT liability of payroll servicesRevenue & Customs Brief, Issue 16. 22 October 20201 Purpose of this briefThis brief tells you about HMRC's position following the decision by the Cheshire Centre for Independent Living ('Cheshire') to concede the appeal in the Upper Tribunal. Because the Upper Tribunal set aside the decision of the First-tier Tribunal, there is no change to HMRC's position which is that the Cheshire case was wrongly decided on the grounds set out by the First-tier Tribunal.The case concerned the VAT liability of payroll services provided to disabled persons to enable them to employ a personal assistant to help them to live in their own homes. The issue was whether this was a service directly connected with the provision of care and therefore exempt.2 Who needs to read thisThis brief applies to: • organisations that make supplies of payroll services to disabled persons and their advisers • businesses with appeals claiming payroll services are exempt, where the appeals are currently stood behind HMRC's appeal in Cheshire3 Background of the First-tier Tribunal's
Revenue & Customs Brief, Issue 16. 22 October 2020
This brief tells you about HMRC's position following the decision by the Cheshire Centre for Independent Living ('Cheshire') to concede the appeal in the Upper Tribunal. Because the Upper Tribunal set aside the decision of the First-tier Tribunal, there is no change to HMRC's position which is that the Cheshire case was wrongly decided on the grounds set out by the First-tier Tribunal.
The case concerned the VAT liability of payroll services provided to disabled persons to enable them to employ a personal assistant to help them to live in their own homes. The issue was whether this was a service directly connected with the provision of care and therefore exempt.
This brief applies to:
• organisations that make supplies of payroll services to disabled persons and their advisers
• businesses with appeals claiming payroll services are exempt, where the appeals are currently stood behind HMRC's appeal in Cheshire
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.