Black Cabs Services Ltd v Revenue & Customs (VAT error correction claim) [2021] UKFTT 191 (TC) (6 May 2021)

Black Cabs Services Ltd v Revenue & Customs (VAT error correction claim) [2021] UKFTT 191 (TC) (6 May 2021)

The Tribunal found that the Appellant provided drivers with a genuine option to use their own insurance, that the cost of insurance was separately identified in agreements and receipts, and that the typical consumer would regard the insurance as a separate supply. Therefore, the Appellant made a separate exempt supply of insurance in addition to the standard rated supply of vehicle hire.

Citation
[2021] UKFTT 191
Parties
Appellant: Black Cabs Services Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
06 May 2021
Procedural Posture
VAT Error Correction Claim Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed in full
Legal Topics
VAT Exemption, Composite and Multiple Supplies, Insurance Exemption, Error Correction Claims
Tax Law VAT Law VAT Exemption Composite and Multiple Supplies Insurance Exemption Error Correction Claims

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Parties

Black Cabs Services Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Error Correction Claim Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the Appellant makes a standard rated supply of taxi vehicle hire or a separate exempt supply of insurance together with the standard rated supply of taxi vehicle hire

Ratio Decidendi

The Tribunal found that the Appellant provided drivers with a genuine option to use their own insurance, that the cost of insurance was separately identified in agreements and receipts, and that the typical consumer would regard the insurance as a separate supply. Therefore, the Appellant made a separate exempt supply of insurance in addition to the standard rated supply of vehicle hire.

Court Disposition

Appeal allowed in full

Orders

  • The Respondents' decision to refuse the Appellant’s VAT error correction claim is set aside.