Paymex Ltd v Revenue & Customs [2011] UKFTT 350 (TC) (26 May 2011)

Paymex Ltd v Revenue & Customs [2011] UKFTT 350 (TC) (26 May 2011)

The Tribunal found that Blair Endersby’s services in connection with consumer IVAs do not constitute exempt intermediary services under Item 5, Group 5, Schedule 9, VATA 1994, nor do they fall within the scope of Art 135(1)(d) of the Principal VAT Directive. The services are not intermediary in nature as defined by the legislation, but are standard-rated taxable supplies for VAT purposes.

Citation
[2011] UKFTT 350 (TC)
Parties
Appellant: Paymex Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
26 May 2011
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Financial Services, Individual Voluntary Arrangements, Intermediary Services
Tax Law Insolvency Law European Union Law VAT Exemption Financial Services Individual Voluntary Arrangements Intermediary Services

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Parties

Paymex Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Are the services supplied by Blair Endersby in connection with consumer IVAs exempt supplies of financial services under EU and UK VAT law?
  2. 2 Do the services constitute intermediary services under Item 5, Group 5, Schedule 9, VATA 1994?

Ratio Decidendi

The Tribunal found that Blair Endersby’s services in connection with consumer IVAs do not constitute exempt intermediary services under Item 5, Group 5, Schedule 9, VATA 1994, nor do they fall within the scope of Art 135(1)(d) of the Principal VAT Directive. The services are not intermediary in nature as defined by the legislation, but are standard-rated taxable supplies for VAT purposes.

Court Disposition

Appeal dismissed

Orders

  • The supplies made by Blair Endersby in connection with consumer IVAs are taxable supplies for VAT purposes.
  • No VAT exemption applies under EU or UK law.