-
Governance advisory
We guide boards and management teams in frameworks, team processes and leadership dynamics to deliver sustainable value.
-
Financial services advisory
Get market-driven expertise to achieve your goals in banking, insurance, capital markets, and investment management.
-
Business risk services
Our market-driven expertise helps firms keep growing and manage risk in an evolving regulatory landscape.
-
Risk
Meet risks with confidence and transform your business – we support you to manage risk and deliver on your goals.
-
Economic consulting
Bespoke guidance grounded in complex economic theory and practical sector insight to help you make the right decisions.
-
Government and public sector
Experience and expertise in delivering quality public sector advisory and audits.
-
Business consulting
Partnering with you to deliver sustainable business change that helps you realise your ambitions.
-
Transaction advisory services
Whether buying or selling, we help you get the deal done with our comprehensive range of transaction advisory services.
-
Financial accounting advisory services (FAAS)
Our FAAS team can support your finance function with the flexible resource they need to get results.
-
Corporate finance advisory
Building a business is never easy. We help you maximise the value of your business and find the right option.
-
Valuations
Help to understand or support the valuation of a business or asset.
-
Insolvency and global asset recovery
We provide asset tracing and seamless cross-border global recovery for clients.
-
Forensic and investigation services
Market-driven expertise in investigations, dispute resolution and digital forensics.
-
Restructuring
Our restructuring team help lenders, investors and management navigate contingency plans, restructuring and insolvency.
-
Pensions assurance
A tailored service that responds to evolving risks and regulations.
-
Accounting services
Optimise your growth with expert accounting services. Contact us today.
-
Royalty and intellectual property (IP) audits
Enhance IP asset protection with our royalty and IP audit services. Expertise in licensing, revenue detection, and compliance improvements.
-
Business consulting
Partnering with you to deliver sustainable business change that helps you realise your ambitions.
-
Corporate Simplification
Release value, reduce compliance complexity, and improve tax efficiency by streamlining your group structure.
-
Economic consulting
Bespoke guidance grounded in complex economic theory and practical sector insight to help you make the right decisions.
-
Governance advisory
We guide boards and management teams in frameworks, team processes and leadership dynamics to deliver sustainable value.
-
International
Unlock global opportunities with our local expertise and worldwide reach.
-
People advisory
Driving business performance through people strategy and culture.
-
Strategy Group
Successful business strategy is rooted in a clear understanding of the market, customer segmentation and how purchase decisions vary.
-
Respond: Data breach, incident response and computer forensics
Are you prepared for a cyber failure? We can help you avoid data breaches and offer support if the worst happens.
-
Comply: Cyber security regulation and compliance
Cyber security regulation and compliance is constantly evolving. Our team can support you through the digital landscape.
-
Protect: Cyber security strategy, testing and risk assessment
Cyber security threats are constantly evolving. We’ll work with you to develop and test robust people, process and technology defences to protect your data and information assets.
-
Corporate finance advisory
Building a business is never easy. We help you maximise the value of your business and find the right option.
-
Debt advisory
Working with borrowers and private equity financial sponsors on raising and refinancing debt. We can help you find the right lender and type of debt products.
-
Financial accounting advisory services (FAAS)
Our FAAS team can support your finance function with the flexible resource they need to get results.
-
Financial modelling services
Financial modelling that helps you wrestle with your most pressing business decisions.
-
Operational deal services
Enabling transaction goals through due diligence, integration, separation, and other complex change.
-
Our credentials
Search our transactions to see our experience in your sector and explore the deals advisory services we've delivered.
-
Transaction advisory services
Whether buying or selling, we help you get the deal done with our comprehensive range of transaction advisory services.
-
Valuations
Help to understand or support the valuation of a business or asset.
-
The ESG agenda
Shape your ESG agenda by identifying the right metrics, sustainable development and potential business value impact.
-
ESG driven business transition
Whatever your ESG strategy, we can support your organisation as it evolves while maximising efficiency and profitability.
-
ESG programme and change management
Do you have the right capabilities to drive the delivery of your ESG strategy to realise your targets?
-
ESG risk management
You must protect, comply, understand and influence to successfully manage the risk involved with ESG issues. We can help.
-
ESG strategy, risk and opportunity identification
We can help you clearly define your ESG Strategy, with the risks and opportunities identified and managed.
-
Create value through effective ESG communication
Building trust and engagement with your stakeholders on your ESG strategy.
-
ESG metrics, targets and disclosures
The pressure to report your ESG progress is growing. Do your targets measure up?
-
ESG governance, leadership and culture framework
Make the most of ESG opportunities by effectively embedding your strategy across your organisation.
-
ESG and non-financial assurance
Support your board to be confident in supplying robust information that withstands scrutiny.
-
Actuarial and insurance consulting
We consult extensively to the life insurance, general insurance, health insurance and pensions sectors.
-
Business risk services
Our market-driven expertise helps firms keep growing and manage risk in an evolving regulatory landscape.
-
Financial crime
Helping you fight financial crime in a constantly changing environment
-
Financial services business consulting
Leverage our diverse capabilities to manage challenges and take opportunities: from assurance to transformation
-
Financial services tax
Helping financial services firms navigate the global financial services and funds tax landscape.
-
Regulatory and compliance
Providing an exceptional level of regulatory and compliance to firms across the financial services industry.
-
Corporate intelligence
Corporate intelligence often involves cross-border complexities. Our experienced team can offer support.
-
Litigation support
Industry-wide litigation support and investigation services for lawyers and law firms.
-
Disputes advisory
Advising on quantum, accounting and financial issues in commercial disputes.
-
Forensic investigations and special situations
Do you need clarity in an uncertain situation? If you're accused of wrongdoing we can help you get the facts right.
-
Forensic data analytics
Our forensic data analytics team are helping businesses sift the truth from their data. See how we can help your firm.
-
Monitoring trustee and competition services
Monitoring trustee services to competition, financial and regulatory bodies.
-
Financial crime
Supporting your fight against financial crime in an ever-changing environment
-
Public sector advisory
To deliver excellent public services, local and central government need specialist support.
-
Public sector consulting
Helping public sector organisations maintain oversight of services and understand what's happening on the ground.
-
Public sector audit and assurance
As a leading UK auditor, we have unparalleled insights into the risks, challenges and opportunities that you face.
-
Contentious estates and family disputes
We manage complex and sensitive disputes through to resolution.
-
Digital Asset Recovery
Get guidance and technical expertise on digital finance and cryptoasset recovery from our dedicated crypto hub.
-
Grant Thornton Offshore
Grant Thornton Offshore is our one-stop global solution for insolvency, asset recovery, restructuring and forensics services.
-
Insolvency Act Portal
Case information and published reports on insolvency cases handled by Grant Thornton UK LLP.
-
Litigation support
Industry-wide litigation support and investigation services for lawyers and law firms.
-
Personal insolvency
We can support you to maximise personal insolvency recovery and seek appropriate debt relief.
-
South Asia business group
Supporting your growth in the UK-India economic corridor and beyond.
-
US business group
Optimise your trans-Atlantic operations with local knowledge and global reach.
-
Japan business group
Bridging the commercial and cultural divide and supporting your ambitions across Japan and the UK.
-
Africa business group
Connecting you to the right local teams in the UK, Africa, and the relevant offshore centres.
-
China-Britain business group
Supporting your operations across the China – UK economic corridor.
-
Contingency planning and administrations
In times of financial difficulty, it is vital that directors explore all the options that are available to them, including having a robust ‘Plan B’.
-
Corporate restructuring
Corporate restructuring can be a difficult time. Let our team make the process simple and as stress-free as possible.
-
Creditor and lender advisory
Whether you're a creditor or lender, complex restructurings depend on pragmatic commercial advice
-
Debt advisory
Our debt advisory team can find the right lender to help you in restructuring. Find out how our experts can support you.
-
Financial services restructuring and insolvency
Financial services restructuring and insolvency is a competitive marketplace. Our team can help you navigate this space.
-
Pensions advisory services
DB pension-schemes need a balanced approach that manages risk for trustees and sponsors in an uncertain economy.
-
Restructuring and insolvency tax
Tax will often be crucial in a plan to restructure a distressed business. Our team can guide you through the process.
-
Restructuring Plans
Market leading experience in advising companies and creditors in Restructuring Plan processes.
-
Controls advisory
Build a robust internal control environment in a changing world.
-
Data assurance and analytics
Enhancing your data processes, tools and internal capabilities to help you make decisions on managing risk and controls.
-
Enterprise risk management
Understand and embrace enterprise risk management – we help you develop and connect risk thinking to your objectives.
-
Internal audit services
Internal audit services that deliver the value and impact they should.
-
Managing risk and realising ESG opportunities
Assess and assure risk and opportunities across ESG with an expert, commercial and pragmatic approach.
-
Project, programme, and portfolio assurance
Successfully delivering projects and programmes include preparing for the wider impact on your business.
-
Service organisation controls report
Independent assurance provides confidence to your customers in relation to your services and control environment.
-
Supplier and contract assurance
Clarity around key supplier relationships: focusing on risk, cost, and operational performance.
-
Technology risk services
IT internal audits and technology risk assurance projects that help you manage your technology risks effectively.
-
Capital allowances (tax depreciation)
Advisory and tools to help you realise opportunities in capital allowances.
-
Corporate tax
Helping companies manage corporate tax affairs: delivering actionable guidance to take opportunities and mitigate risk.
-
Employer solutions
We will help you deliver value through your employees, offering pragmatic employer solutions to increasing costs.
-
Indirect tax
Businesses face complex ever changing VAT regimes, guidance and legislation. We can help you navigate these challenges.
-
International tax
Real-world international tax advice to help you navigate a changing global tax landscape.
-
Our approach to tax
We advise clients on tax law in the UK and, where relevant, other jurisdictions.
-
Private tax
Tax experts for entrepreneurs, families and private business. For now and the long term.
-
Real estate tax
Stay ahead of real estate tax changes with holistic, tax-efficient solutions.
-
Research and development tax incentives
We can help you prepare optimised and robust research and development tax claims.
-
Tax dispute resolution
We make it simple to stay compliant and avoid HMRC tax disputes
-
Tax risk management
We work with you to develop effective tax risk management strategies.
-
Skills and training
Get the right support to deliver corporate and vocational training that leads the way in an expanding market.
-
Private education
Insight and guidance for all businesses in the private education sector: from early years to higher education and edtech.
-
Facilities management and property services
Get insight and strategic support to take opportunities that protect resilience and drive UK and international growth.
-
Recruitment
Helping recruitment companies take opportunities to achieve their goals in a market where talent and skills are key.
-
Food and beverage (F&B)
We can help you find the right ingredients for growth in your food and beverage business.
-
Travel, tourism and leisure
Tap into our range of support for travel, tourism and leisure businesses in this period of challenge and change.
-
Retail, e-commerce and consumer products
With multiple challenges and opportunities in the fast-evolving retail sector, make sure you are ready for them.
-
Banking
Our expertise and insight can help you respond positively to long term and emerging issues in the banking sector.
-
Capital markets
2020 is a demanding year for capital markets. Working with you, we're architecting the future of the sector.
-
Insurance
Our experienced expert team brings you technical expertise and insight to guide you through insurance sector challenges.
-
Investment management
Embracing innovation and shaping business models for long-term success.
-
Pensions
Pension provision is an essential issue for employers, and the role of the trustee is becoming increasingly challenging.
-
Central and devolved government
Helping central and devolved governments deliver change to improve our communities and grow our economies.
-
Infrastructure and transport
Delivering a successful transport or infrastructure project will require you to balance an often complex set of strategic issues.
-
Local government
Helping local government leverage technical and strategic expertise deliver their agendas and improve public services.
-
Regeneration development and housing
We provide commercial and strategic advice to assist your decision making in pursuing your objectives.
-
Health and social care
Sharing insight and knowledge to deliver transformation and improvement to health and social care services.
-
Charities
Supporting you to achieve positive change in the UK charity sector.
-
Education and skills
The education sector has rarely faced more risk or more opportunity to transform. You need to plan for the future.
-
Social housing
We are committed to helping change social housing for the better, and can help you make the most of every opportunity.
-
Technology
We work with dynamic technology companies of all sizes to help them succeed and grow internationally.
-
Telecommunications
Take all opportunities to realise your goals in telecommunications: from business refresh to international expansion.
-
Media
Media companies must stay agile to thrive in today’s highly competitive market – we’re here to support your ambitions.
Summary
We report on a selection of cases from the Tribunals this month. Hippodrome Casino has failed to convince the Upper Tribunal that its restaurants and theatre had the sole purpose of making taxable supplies, rather than as a way of encouraging participation in the exempt casino activities. It follows that the UT ruled the standard turnover method of partial exemption was not replaced by an override calculation.
In the First Tier Tribunal, a scrap metal trader provided an easy assessment to HMRC by failing to give due regard to the strict requirements for export evidence, a vehicle trailer dealer convinced the Tribunal it would not have used commercial specification Land-Rovers converted into motor cars for any private use, and a cosmetic surgeon failed to provide evidence that its services came within the medical exemption.
The Advocate General of the Court of Justice has opined that a sister company in Romania providing extensive services to its German sister company did not amount to a fixed establishment of the German company, and the Court has ruled an employee who sold false VAT invoices showing his employer’s VAT number is liable for the VAT shown, unless the employer failed to have adequate controls.
News from the UK Courts and Tribunals
Upper Tribunal (UT)
Hippodrome Casino Limited [2024] UKUT 27 (TCC)
This was an appeal by HMRC against the First Tier Tribunal (FTT) decision. The UT decided the FTT had made a material error of law for the following reasons:
- Nowhere in the Decision did the FTT give reasons for rejecting HMRC’s contention that the areas allocated to bars, restaurant and theatre were also used in part for the purposes of its gaming business, such that there was dual use of those areas, or why if there was such dual use, the Standard Method Override (which assumed exclusivity of use) could be more precise than the standard turnover method.
- The FTT did not explain why, if there was such dual use, the SMO (which assumed exclusivity of use) guarantees a more precise result than the result which would arise from the application of the turnover-based standard method. The onus was on Hippodrome to displace the use of the standard method (in other words because the standard method did not produce a fair and reasonable result).
The UT then had a choice to send the case back to the FTT or to remake the decision itself. It decided it could use the findings of fact from the FTT together with other evidence that was before the FTT (it is not allowed to consider new evidence) to remake the decision.
The UT accepted HMRC’s case on the evidence and find that hospitality and entertainment areas (restaurants and theatre) were also used economically for the gaming business, rather than exclusively in making taxable supplies as asserted by Hippodrome. It also accepted that the restaurants and theatre had made losses according to the management accounts and were subsidised by the profitable gaming business. It came to the inevitable conclusion that Hippodrome had not shown the standard method would not produce a fair and reasonable attribution of input tax, and this means the standard method override is not necessary.
Comment: The judgement runs to 44 pages, 21 of which deal with remaking the decision in favour of HMRC, and for reasons of brevity we have highlighted the major factors considered by the UT and its conclusions. For those of you involved in partial exemption negotiations with HMRC it would be worth further in-depth study, particularly if you are trying to argue that part of the business only has a direct and immediate link to making taxable supplies.
First Tier Tribunal
H Ripley & Co Limited TC09067
This is an “evidence of export” case, where a scrap metal dealer sold scrap to Belgium using third party transport. It did not have sophisticated systems to keep the appropriate evidence required by Notice 725 and tried to rely on boarding cards provided by the ferry company at Dover. Unfortunately, the boarding cards proved inconclusive, and the Tribunal did not accept them as appropriate evidence, so the appeal was dismissed.
Comment: HMRC will often see an assessment based on the lack of export evidence as an easy win. The conditions set out in Notice 725 have the force of law, and HMRC will apply them strictly.
Three Shires Trailers Limited TC09044
Three Shires purchased two new Land-Rover Discovery vehicles with commercial vehicle specification (no rear seats and blacked out rear windows). Within a few days, a specialist supplier fitted extra seats and cleared the rear window, which would bring them with the definition of a motor car.
HMRC initially said the vehicles were effectively motor cars when purchased, because of the changes made so soon after taking delivery, and assessed for overclaimed input tax. On review, HMRC changed its decision to allow initial recovery, but then imposed output tax through the self-supply charge under Article 5 of the Value Added Tax (Cars) Order 1992. The company had taken advice from the specialist supplier that it would not affect the VAT status, but after the decisions of HMRC it had the alterations reversed and argued the changes had only been temporary.
Cutting a longish story quite short, the Tribunal was persuaded that appellant only intended to use the vehicles for business purposes (it used them to collect and deliver stacked up trailers and additional employees when attending trade shows). This meant that the self-supply would not apply.
Comment: Given that it has proved very difficult to show there is no intended availability for private use of motor cars, (remember Upton (CM) t/a Fagomatic 2002 STC 640 ) it is possible HMRC will appeal this decision.
Aesthetic Doctor Limited TC09030
The company provided cosmetic treatments and HMRC asserted these were not exempt, and retrospectively registered the business back to 2010 with an output tax liability of £1.6 million from 2010 to 2020.
The appellant has the burden of proof to show it was entitled to exemption, but the Tribunal found the evidence produced by the sole director to be inconsistent and generally unsatisfactory, the patient records were sketchy and did not appear to conform to accepted standards.
Over 57 pages and about 450 paragraphs the Tribunal concludes the appellant is not “diagnosing, treating and, in so far as possible curing diseases and health disorders” and dismissed the appeal.
Comment: the importance of witnesses providing evidence (rather than opinion and advocacy) cannot be over-emphasized. It seems the director, even though he had instructed a specialist and experienced barrister, had spectacularly failed in this regard. Facts are vital, and the FTT is the forum for facts to be found.
Court of Justice of the European Union
SC Adient Ltd & Co. KG Case C‑533/22 - Romania
On 1 February 2024 Advocate General Kokott opined that services provided by a sister company in another member state do not create a fixed establishment in that other member state.
The Adient group manufactures assemblies such as car seats for the automobile industry, the German company buys raw materials, part assemblies etc and has them delivered to the Romanian factory where it keeps ownership throughout the manufacturing process (so it needed to be VAT registered in Romania). The Romanian company provides manufacturing process and expertise and distributes the finished goods at the request of the German company.
The Romanian tax authority said the place of supply depends on the establishment of the German company, and there were sufficient human and technical resources provided by the Romanian company (in the same corporate group, but not VAT grouped) to make the services subject to Romanian VAT. The VAT would have been recoverable, but the tax authority was seeking penalties and interest.
Comment: This is the latest in a recent run of disputes over whether a subsidiary or sister company creates a fixed establishment and moves the place of supply, and the AG is recommending the Court does not consider the activities in RO amount to a fixed establishment just because a sister company provides a wide variety of services to it.
P sp. z o.o - Case C‑442/22 - Poland
On 1 February 2024 the Court ruled that where an employee has issued fake tax invoices showing VAT using the employer’s VAT number, without that employer’s knowledge or consent, the employee is liable for the VAT, unless the employer did not exercise the due diligence reasonably required to monitor the conduct of that employee.
Comment: The dispute revolves around an employer of a petrol station, who without the employer's knowledge, sold false VAT invoices to business customers so they could recover input tax. The Court has agreed with the AG that the person issuing the false invoices, in this case the employee, is liable for the output tax unless the employer failed to have adequate controls.
Valentina Heights’ E OOD Case C–733/22 – Bulgaria
On 8 February 2024 the Court ruled that Bulgaria’s national legislation under which the reduced rate of VAT for accommodation provided in hotels and similar establishments is subject to a requirement that such an establishment hold a categorisation certificate or a provisional categorisation certificate. However, the principle of fiscal neutrality can apply to limit reduced rating to concrete and specific aspects hotel accommodation.
It seems that in Bulgaria the reduced rate applies to accommodation provided in hotels only if the establishment has a “categorisation certificate” issued by the local council (effectively certifying safety aspects, appropriate staff and management). Valentina Heights, a holiday complex, lost its certification in 2019 but continued to apply the 9% reduced rate instead of the standard 20% rate. The Tax authority ruled that the standard rate applied without certification.
The CJEU judgement looks at the principle of fiscal neutrality which precludes treating similar supplies of services, which are thus in competition with each other, differently for VAT purposes. The court commented that providing hotel accommodation without certification could be unlawful and lead to administrative penalties, but this is not a vital factor when discussing fiscal neutrality.
Comment: in many respects the CJEU has passed the buck back to the national court. Since the taxpayer applied for its certificates to be renewed in 2016 and the local authority seems to have been very slow in responding (we do not know the reason for the delay) it would appear unreasonable to apply the standard rate.
The case is not likely to have an direct impact in the UK since the Bulgarian rules on Hotel accommodation are different. However much of the judgement involves the concept of fiscal neutrality, and importantly that similar services must be viewed through the eyes of the consumer, rather than the supplier (remember characterisation of supplies - Gray and Farrer, Mesto Zamberk etc). It remains to be seen what the present impact of Brexit has on UK taxpayers being able to rely on the EU principle of fiscal neutrality.
Other News
VAT Committee of the European Commission
On 31 January 2024, the VAT Committee updated the Guidelines resulting from its meetings covering the topics discussed at all the meetings held from 23 November 1977 to 20 November 2023, together with an index of the Guidelines.
The results and agreements reached in the VAT Committee meetings do not have legally binding power but can provide guidance on the application of the VAT Directive (2006/112). Therefore, the results of these meetings have been classified under the Guidelines depending on the level of agreement among Member States, by varying majority: unanimously, almost unanimously or by large majority.
It should be taken into account that some of the Guidelines agreed under the meetings of the VAT Committee have been transformed into legally binding implementing measures in accordance with the procedure set out in article 397 of the VAT Directive (2006/112), which can be found in the VAT Implementing Regulation (282/2011)
Finally a reminder the Chancellor of the Exchequer will be announcing his Budget on 6 March 2024. We will be providing our insight on any indirect tax aspects shortly thereafter.