TC09532 - [2025] UKFTT 00568 (TC)

The Appellant was incorporated on 20 July 2020, and voluntarily registered for VAT form 15 August 2020. Part of the Appellant’s business was the supply of Covid-19 test kits. The Appellant treated this supply as an exempt supply.

On 21 January 2022, HMRC notified the Appellant of its decision that the Appellant’s supply of Covid-19 test kits for the VAT period 06/21 should be standard rated rather than exempt from VAT. The Appellant sought a review from HMRC.

On 13 May 2022, HMRC issued its review decision to the Appellant. That review decision varied the original decision, by reducing the amount of VAT due from the Appellant for the period 06/21, but upheld the decision that the Appellant’s supply of Covid-19 test kits was a standard rated supply.

Following receipt of HMRC’s review decision, the Appellant sought advice from its legal advisor. On 19 July 2022, that legal advisor advised the Appellant that, on the basis of the facts supplied by the Appellant, the Appellant would be unlikely to succeed in an appeal to the Tribunal. The Appellant then sought further information from its own supplier. This additional information was emailed to Mr Moran on 13 September 2022.

By this time the Appellant was suffering financial difficulties in paying tax to HMRC. Mr Moran’s MP wrote to HMRC to seek help with these issues. Once the Appellant had received further information from its supplier, Mr Moran instructed a new agent to assist in discussions with HMRC.

On 20 September 2022, the new agent contacted HMRC to provide what was described as fresh information. On 27 September 2022, HMRC informed the agent that, as there had already been a review, the Appellant’s options were ADR or an appeal to the Tribunal.