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Exeter student union landed with £283k bill in tax row | Exeter student union landed with £283k bill in tax row |
(about 7 hours later) | |
A university student union has contested a bill of more than £280,000 for unpaid VAT on food sold in a bar. | A university student union has contested a bill of more than £280,000 for unpaid VAT on food sold in a bar. |
Following a review by HMRC, Exeter University's student union was told it owed £269,000 of unpaid taxes and an additional £14,000 in interest. | |
The guild has challenged the assessment and said a letter sent by HMRC in 2003 suggested the food was exempt from VAT. | The guild has challenged the assessment and said a letter sent by HMRC in 2003 suggested the food was exempt from VAT. |
The case will be heard by a tribunal following a hardship request made by the guild. | The case will be heard by a tribunal following a hardship request made by the guild. |
The dispute has centred on the letter sent by HMRC in September 2003 which the guild believed allowed food sold in The Ram, a student bar, to be exempt from VAT. | The dispute has centred on the letter sent by HMRC in September 2003 which the guild believed allowed food sold in The Ram, a student bar, to be exempt from VAT. |
According to the guild, HMRC argued the letter "can be interpreted differently." | According to the guild, HMRC argued the letter "can be interpreted differently." |
'Particularly challenging' | 'Particularly challenging' |
HMRC said it did not comment on individual cases or ongoing investigations. | HMRC said it did not comment on individual cases or ongoing investigations. |
Richard Wild, of the Chartered Institute of Taxation, said HMRC would "typically request" that a taxpayer adopted the correct VAT payments from a current or future date. | Richard Wild, of the Chartered Institute of Taxation, said HMRC would "typically request" that a taxpayer adopted the correct VAT payments from a current or future date. |
He said: "Any retrospective action by HMRC should be exceptional, and restricted to cases where the terms of its policy are not met." | He said: "Any retrospective action by HMRC should be exceptional, and restricted to cases where the terms of its policy are not met." |
An annual report showed a 10% decrease in guild sales last year, falling to about £2.5m. | An annual report showed a 10% decrease in guild sales last year, falling to about £2.5m. |
In its 2017-18 report, the guild said: "Trading has been particularly challenging in our licensed venues as both our bar and nightclub have seen significantly reduced numbers of attendees throughout the year." | In its 2017-18 report, the guild said: "Trading has been particularly challenging in our licensed venues as both our bar and nightclub have seen significantly reduced numbers of attendees throughout the year." |
The student union said it expected to see an improvement in the figures from the 2018-19 academic year. | The student union said it expected to see an improvement in the figures from the 2018-19 academic year. |
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