The Upper Tribunal ruled that Lycamobile UK must pay more than £50 million in VAT, requiring the operator to charge VAT on the full price of prepaid mobile bundles at the point of sale, rather than only on services actually used. The decision, dated 12 Feb 2026, overturns Lycamobile's previous VAT calculation method.
It ruled that Lycamobile must pay VAT on the full price of mobile plan bundles at the point of sale, resulting in more than £50 million payable.
The decision was dated 12 Feb 2026.
Previously VAT was calculated only on services used; now VAT is due on the full bundle price at sale.
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UK Government · 1 day ago
This HMRC internal manual provides guidance on how VAT applies to local authorities and other government and public bodies in the UK. It covers various categories such as non‑business activities, police authorities, NHS capital projects, and local government partnership programmes. The manual serves as a reference for VAT compliance and exemptions for public sector entities.
Seeburger · 5 days ago
The UK will require all VAT invoices to be e‑invoiced by 2029, mandating machine‑readable formats and accredited transmission. The article outlines the scope, Peppol alignment, and a step‑by‑step timeline for 2026‑2028 to help finance, IT and procurement prepare. It highlights key milestones such as selecting an access point, adopting a canonical data model, and piloting with trading partners.
TaxJournal · 5 days ago
The interview with Fabian Barth, VAT Manager at Alvarez & Marsal, discusses the challenges of obtaining binding rulings in the UK, recent Supreme Court VAT cases in 2025, and his view that legislative changes should allow public law arguments in tribunals. He notes that the Hotel La Tour and Prudential cases downplayed CJEU precedent, and that European case law remains binding but is not always applied.
Deloitte · 7 days ago
The Finance (No. 2) Bill 2024‑26 has been amended in Committee and will return to the House of Commons for further stages. Scotland will introduce a new Air Departure Tax on 1 April 2027, replacing APD, with a consultation closing 26 March 2026. Deloitte’s Advance Tax Certainty service will become operational from July 2026, while the OECD Global Forum on VAT met in January 2026 to discuss digital economy and near real‑time data collection.
GOV.UK · 10 days ago
The HMRC internal manual outlines the rules and procedures for calculating and managing default interest on VAT arrears. It covers legal powers, calculation methods, interest adjustments, and circumstances affecting default interest, providing guidance for HMRC staff and taxpayers.
Bloomberg Tax · 12 days ago
The UK First‑Tier Tax Tribunal issued a judgment on 26 January 2026 clarifying the eligibility of input VAT deductions in cases involving fraud. The tribunal upheld HMRC’s denial of deductions for payments to four payroll service providers, finding that the taxpayers knew the transactions were connected to VAT fraud. The decision reinforces that knowledge of fraud can lead to denial of input VAT recovery.
