Catering

We have obtained major repayments of VAT from HM Revenue & Customs (HMRC) for a number of leading catering organisations in recent years, even in cases where professional advice has already been taken or claims have previously been unsuccessful due to unjust enrichment provisions or other reasons.

This includes a repayment approaching £1m for a client on the basis that a product was freshly baked rather than hot takeaway food. The claim was repaid within less than 4 months.

Unjust enrichment

If the burden of VAT is passed on to the customer rather than borne by the business HMRC can try to refuse any potential repayment on the grounds that the business will be unjustly enriched by the repayment. We have been instructed by a number of businesses where HMRC has sought to invoke the unjust enrichment provisions. In all the cases where we have represented a client in making repayment claims on these matters, even where advice has previously taken from another firm of professional advisors, repayments have been received and the unjust enrichment provisions have not been invoked. See CASE STUDY 1

Current Food & Catering 'hot' topics

Supply of cold food at establishments such as exhibition centres, festivals, sporting venues, factories, universities etc

We have obtained significant repayments of VAT from HM Revenue & Customs (HMRC) for businesses operating from such establishments. We represented Pret a Manger (Europe) Limited in their successful appeal to the VAT and Duties Tribunal on this issue. We have also acted on behalf of a client who had had their retrospective repayment claim rejected by HMRC.

Previously HM Revenue & Customs (HMRC) took the view that, say, all of an exhibition centre was a single premises and any person selling sandwiches at the venue had to account for VAT. Haines Watts won a lead case in the VAT Tribunal arguing this point, which resulted in a change of policy by HMRC. Thus we have obtained 6 and 7 figure VAT repayments for caterers with outlets in departure lounges at airports, racecourses, exhibition centres, office blocks, colleges, factories etc.

VAT charged on freshly baked products such as "Paninis", Ciabatta savouries, Cornish pasties etc

Whether or not a product is hot takeaway food (liable to VAT) or freshly baked (zero-rated) is complex. Some bakers and food outlets apply the zero rate to their freshly baked pasties, sausage rolls and paninis whilst others do not. The cases in this area have gone both ways depending on the facts and the presentation of the evidence. Again, Haines Watts won a major case at the VAT Tribunal - our clients get zero rating! We have obtained significant repayments of VAT from HMRC for businesses selling such products, see CASE STUDY 2