A real page turner – New case confirms that ghost writing services are zero-rated for VAT
Jaspal Dhillon, 27 April 2026
Jaspal Dhillon, 27 April 2026
A ghost-writing business set out to capture the stories of a range of regular people, but ended up as the hero of their own tale when a question of VAT obligation arose.
The story has now reached its conclusion and the denouement may be of great interest to others who offer unique services, or more generally work in ghost-writing.
It is worth reviewing the twisted tale to determine what it means for the future of VAT application on different services.
The tribunal case of Story Terrace Limited v HMRC [2025] TC09725 centred on whether the service necessitated the 20 per cent standard rate of VAT or could be zero-rated for VAT.
The disagreement arose due to uncertainty about what was specifically being purchased by customers.
Story Terrace interviewed people and used ghost-writers to create a physical book for them to have of their own life story.
This meant that it was both a service and a product, creating ambiguity for VAT considerations.
HMRC attempted to argue that Story Terrace made a single standard-rated supply of ghost-writing or bespoke services and that this should be treated under the standard rate for VAT.
The argument was reinforced by the notion that the printed book was an output of the process and all other components of the service were standard-rated.
However, Story Terrace argued that the customers were after the physical book and that the other services rendered were facilitating the finished product.
The tribunal ultimately sided with Story Terrace and agreed that breaking down the transition into composite parts was fruitless, given that the most significant part of the transaction was the book itself – something that would clearly be zero-rated.
Given the unique nature of the service rendered by Story Terrace, there are few other businesses that may find a direct parallel to the situation.
However, the case does reveal that sometimes it is worth pushing back on HMRC’s view of VAT if you feel that it does not accurately capture the true nature of the service rendered.
To do this, it is vital that you seek VAT advice to ensure that you have fully understood the scope of the VAT requirements that HMRC are using, as well as the alternative options that may better fit your business.
Our team are adept at understanding the intricacies of VAT and can support your business in finding the correct option for you.
To ensure you are meeting the VAT requirements that fit your business, get in touch with our VAT expert, Jas Dhillon (jaspaldhillon@lubbockfine.co.uk)
Our specialists regularly share insights, guidance and practical updates to help organisations navigate change with confidence. If you’d like to receive future VAT related updates from our team, you can sign up here.
