Readers may remember that in December I reported that a new homeless hostel in Newcastle was at risk because the VAT had ruled that it was a commercial building and not a hostel (mainly because they did not have a workable definition of a homeless persons hostel) and that therefore VAT was payable. The VAT bill (£315,000) would have put the company into liquidation and put other hostels at risk.
You will be pleased to learn that following an appeal by the company, the decision has been overturned and the VAT bill withdrawn. Phew!
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