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Optician Fights H M Revenue and Customs in the High Court

In the case of DCM (Optical Holdings) Limited vs. HM Revenue and Customs (HMRC) the taxpayer was a retail optician who made taxable and exempt supplies.  They applied for the approval of a special method for the deduction of input VAT based on an analysis of 'floor space'. HMRC refused the application and the VAT Tribunal decided that the action taken by HMRC was reasonable.

The Company appealed the decision to the Court of Session to consider whether the Tribunal had been wrong in holding that it had only supervisory jurisdiction in such cases.  In other words, The Tribunal believed it could not substitute its own views for those of HMRC and that its powers were limited to deciding whether HMRC had acted reasonably in reaching its decision.   The Court found that the Tribunal had full appellate jurisdiction and could not only decide whether the Commissioners' decision was reasonable but could also consider the merits of the appellant's proposed partial exemption calculation. Although the Tribunal did not have the power to propose a special method of its own, it did have the power to vary or modify a proposed method so that it could be approved.  On this basis, the case was referred back to the Tribunal to re-hear the appeal of the taxpayer.  Watch this space for the final outcome.........

Morris & Co have a dedicated team specialising in VAT and ophthalmic accounts and are able to provide advice and guidance on all aspects of financial accounting, taxation including partial exemption & business matters.

Testimonials

  • "Over a number of years Morris & Co have provided me with sound financial and business advice. Their in depth knowledge of my particular sector has proved invaluable and they explain my accounts in a way that is easy to understand. All my questions are answered promptly and efficiently and I really appreciate their level of expertise."
    David Evans, R T Booth & Co Ltd
  • "When appointing an accountant it was very important to me to select someone who was not only knowledgeable but friendly and approachable. I have always received proactive, professional advice and I know that the specialist advice I require to run my business is only ever a phone call away. A VAT full cost and apportionment calculation was recently undertaken for my company. As a result of this, my percentages have reduced, thereby saving me additional money."
    Ian McGarvey, Ian McGarvey Opticians Ltd
  • "Having had dealings with Desirie Lea of Morris and Co from the very inception of my company, I have always been impressed with how approachable everyone has been, from the partners to the receptionists. I had spoken to several accountants before instructing Desirie to take charge of my accounts, and from the first phonecall, Desirie impressed me with her forthright manner and her perceptive analysis of various scenarios I put to her. She is always on the ball and is a pleasure to deal with."
    Lloyd Griffiths, Lloyd Griffiths Limited
  • "Desirie and her team have been acting on my behalf since 2002 and I am delighted with the service they provide. As specialists in the ophthalmic sector, they are able to take away the stress of dealing with the partial exemption calculations for VAT purposes, which is a real bonus. I have regular meetings with them at my premises to discuss strategic issues and plan for the future. Management accounts are prepared on a quarterly basis for my company which includes a detailed analysis/commentary of my trading results. I would have no hesitation in recommending the services of Morris and Co to my fellow professionals."
    Anne O'Loan, Niluain Ltd

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Contact Desirie Lea on:

0151 348 8400 or email specs@moco.co.uk for a FREE no-obligation discussion and for information about how we can assist you in maximising your VAT position.