HMRC have lost three recent cases, including this one, relating to VAT on mixed supplies. In each case HMRC have argued that the combined supplies were just one one supply, and standard rate VAT applied to the whole amount. In these three cases, supplies of car and insurance; ice rink admission and skate hire; car hire and car seat hire were all held to be separate. This enabled the taxpayers to treat the elements separately for VAT therefore reducing the overall VAT charge.

These are just examples. Always watch out for situations where one sales invoice is actually separate supplies potentially requiring different VAT treatments