In Tandem Resources Ltd v Revenue & Customs (VAT-best judgment assessments-supply of labour) [2019] UKFTT 615 (TC) (08 October 2019)

In Tandem Resources Ltd v Revenue & Customs (VAT-best judgment assessments-supply of labour) [2019] UKFTT 615 (TC) (08 October 2019)

In Tandem supplied labour to its customers, not merely administration services. The VATable consideration included the wages paid by customers to the employees. HMRC's assessments were made to best judgment and did not overcharge the appellant. The inaccuracies in the VAT returns were due to carelessness, not deliberate conduct.

Citation
[2019] UKFTT 615 (TC)
Parties
Appellant: In Tandem Resources Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
08 October 2019
Procedural Posture
VAT Assessment and Penalty Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal against VAT assessments dismissed; appeal against penalty assessment allowed in part.
Legal Topics
VAT Assessments, Supply of Labour, Outsourced Payroll Services, Penalties for Inaccurate Returns, Best Judgment Assessments
Tax Law VAT Assessments Supply of Labour Outsourced Payroll Services Penalties for Inaccurate Returns Best Judgment Assessments

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Parties

In Tandem Resources Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Assessment and Penalty Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether In Tandem supplied labour or outsourced administration services for VAT purposes
  2. 2 What constitutes the VATable consideration for such supplies
  3. 3 Whether HMRC's VAT assessments were made to best judgment

Ratio Decidendi

In Tandem supplied labour to its customers, not merely administration services. The VATable consideration included the wages paid by customers to the employees. HMRC's assessments were made to best judgment and did not overcharge the appellant. The inaccuracies in the VAT returns were due to carelessness, not deliberate conduct.

Court Disposition

Appeal against VAT assessments dismissed; appeal against penalty assessment allowed in part.

Orders

  • VAT assessments upheld in full, including interest.
  • Penalty reduced to reflect careless rather than deliberate inaccuracies.