A good result for a supplier of printed material

A printer has recently challenged HMRC in court and won. On 28 March 2018 the First Tier Tribunal released its decision in the case of Paragon Customer Communications Ltd (TC06415) that certain items qualified for the zero rate of VAT.

Paragon Customer Communications Ltd (“the Company”) describes itself as a business which plans, creates and delivers both printed and digital communication. It supplies one of its customers, an insurance company, with items consisting of multiple pages of information about insurance policies stapled together and bound in covers. HM Revenue & Customs (HMRC) decided that the standard rate of VAT applied to the items and issued an assessment accordingly.

The First Tier Tribunal decided that the zero rate of VAT applied to the items, and the company has saved £64,000 in VAT

The case illustrates how important it is to take professional advice and not just accept what HMRC decides.   Garbutt + Elliott’s specialist VAT team can assist you in more complex cases over your VAT treatment.  For more information, contact us on hello@garbutt-elliott.co.uk