Adecco UK Ltd & Ors v The Commissioners for HMRC

Adecco UK Ltd & Ors v The Commissioners for HMRC

Both contractually and as a matter of economic and commercial reality, Adecco supplies the temps' services to clients, not merely introductory or ancillary services. Therefore, VAT is payable on the totality of what Adecco is paid by clients, not just the commission element.

Parties
Appellants: Adecco UK Limited, Ajilon (UK) Limited, Badenoch and Clark Limited, Hy-Phen.com Limited, Lawson Bishop Financial Limited, Modis International Limited, Roevin Management Services Limited, Spring Personnel Limited, Spring Technology Staffing Services Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
30 July 2018
Procedural Posture
Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat), Supply of Services, Employment Agencies, Contractual Interpretation, Third Party Consideration
Tax Law Commercial Law Employment Law Value Added Tax (vat) Supply of Services Employment Agencies Contractual Interpretation Third Party Consideration

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 14 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Adecco UK Limited, Ajilon (UK) Limited, Badenoch and Clark Limited, Hy-Phen.com Limited, Lawson Bishop Financial Limited, Modis International Limited, Roevin Management Services Limited, Spring Personnel Limited, Spring Technology Staffing Services Limited

Appellants

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal

Legal Issues

  1. 1 Whether Adecco supplies only introductory and ancillary services or supplies the temps' services to clients for VAT purposes
  2. 2 Whether VAT is payable on the totality of sums received from clients or only on the commission element

Ratio Decidendi

Both contractually and as a matter of economic and commercial reality, Adecco supplies the temps' services to clients, not merely introductory or ancillary services. Therefore, VAT is payable on the totality of what Adecco is paid by clients, not just the commission element.

Court Disposition

Appeal dismissed

Orders

  • Adecco's appeal is dismissed
  • VAT is payable on the total sums received from clients for non-employed temps