Splitting a business to avoid paying VAT

Sky television also did the same by putting a price on their monthly magazine and that portion of your subscription was VAT free. Of course you could not tell sky what to do with the mag as according to them it was an integral part of the package. So even if you told them that you did not want the mag you still had to pay full price . Eric

Jersey is not a country, it is a British crown dependency

^^^^^^^^^^^^^^^^

That's different. They were trying to take advantage of mixed supply rules. I believe it failed because you couldn't choose not to have the magazine, and a lot of people would take that option if they were given the choice.

X-No-Archive: yes In message , Eric Jones writes

That was a neat dodge by BSkyB. When I had a subscription, the price tag on the monthly magazine was GBP3.50. Thus some GBP42.50 pa was removed from VAT liability. At the time BSkyB had around two million subscribers. IIR, BSkyB and customs negotiated a settlement in which BSkyB handed over dosh and were made to write a 100 lines saying that they wouldn't do it again. Customs' case hinged around the fact that it wasn't actually possible to buy the magazine over the counter in any newsagents.

"JF" wrote

What was the other 0.50pa for?

In message , Tim writes

For you to claim as compensation for my crap mental powers while temperatures are around 32C!