Mercy Global Consult Ltd v Adegbuyi-Jackson & Ors [2023] EWCA Civ 1073 (04 October 2023)

Mercy Global Consult Ltd v Adegbuyi-Jackson & Ors [2023] EWCA Civ 1073 (04 October 2023)

The distinction between supply of staff and supply of services for VAT purposes, as established in Mainpay, is binding on the Court of Appeal. The VAT Defence is precluded by this authority, and permission to amend the defences or order a preliminary issue is refused.

Citation
[2023] EWCA Civ 1073
Parties
Claimant/respondent: Mercy Global Consult Limited (in Liquidation); Defendant/appellant: Abayomi Adegbuyi-Jackson; Defendant/appellant: Michael Osemwegie; Defendant/appellant: Funmilayo Ojuolape Adegbuyi-Jackson; Defendant/appellant: Cornerstone Global System UK Limited; Defendant/appellant: Mercy Global Properties Solutions Limited; Defendant/appellant: Dominion Payroll Solutions Limited; Defendant/appellant: Olugbenga Titus Jones Somade; Defendant/appellant: Ojuolape Arcade Limited; Defendant/appellant: DMO Consultancy & Accounting Services Limited; Defendant/appellant: Purpose IP Consult Limited; Defendant/appellant: Hanstal Consulting Limited
Jurisdiction
England and Wales
Judgment Date
04 October 2023
Procedural Posture
Civil Appeal / Appeal From High Court Decision Refusing Permission to Amend Defences and for Preliminary Issue Trial
Outcome
Appeal dismissed
Legal Topics
VAT Exemptions, Supply of Staff Vs Services, Binding Precedent, Permission to Amend Defence, Preliminary Issues
Tax Law Insolvency Law Commercial Law VAT Exemptions Supply of Staff Vs Services Binding Precedent Permission to Amend Defence Preliminary Issues

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Parties

Mercy Global Consult Limited (in Liquidation)

Claimant/respondent

Abayomi Adegbuyi-Jackson

Defendant/appellant

Michael Osemwegie

Defendant/appellant

Funmilayo Ojuolape Adegbuyi-Jackson

Defendant/appellant

Cornerstone Global System UK Limited

Defendant/appellant

Mercy Global Properties Solutions Limited

Defendant/appellant

Dominion Payroll Solutions Limited

Defendant/appellant

Olugbenga Titus Jones Somade

Defendant/appellant

Ojuolape Arcade Limited

Defendant/appellant

DMO Consultancy & Accounting Services Limited

Defendant/appellant

Purpose IP Consult Limited

Defendant/appellant

Hanstal Consulting Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Decision Refusing Permission to Amend Defences and for Preliminary Issue Trial

Legal Issues

  1. 1 Whether the VAT Defence (that supplies were VAT exempt) is precluded by binding authority of Mainpay Ltd v Revenue and Customs Commissioners
  2. 2 Whether the distinction between supply of staff and supply of services is binding law
  3. 3 Whether the prior decision in Mainpay was a mere assumption or manifestly wrong

Ratio Decidendi

The distinction between supply of staff and supply of services for VAT purposes, as established in Mainpay, is binding on the Court of Appeal. The VAT Defence is precluded by this authority, and permission to amend the defences or order a preliminary issue is refused.

Court Disposition

Appeal dismissed

Orders

  • Permission to amend defences refused
  • Application for trial of VAT Defence as preliminary issue refused