Pertemps Recruitment Partnership Ltd v Revenue & Customs [2010] UKFTT 218 (TC) (13 May 2010)

Pertemps Recruitment Partnership Ltd v Revenue & Customs [2010] UKFTT 218 (TC) (13 May 2010)

Overpayments received by Pertemps from customers arise from its trading activities and are receipts arising or accruing from its trade. The payments, made under a mistaken belief of liability for services supplied, are an inevitable incident of trade and are not held in a fiduciary capacity. Therefore, they...

Source-derived case information.

Citation
[2010] UKFTT 218
Parties
Appellant: Pertemps Recruitment Partnership Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
13 May 2010
Procedural Posture
Corporation Tax Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Trading Profits, Mistaken Payments, Corporation Tax Liability, Restitution, Accounting Treatment of Receipts
Tax Law Corporate Law Trading Profits Mistaken Payments Corporation Tax Liability Restitution Accounting Treatment of Receipts

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Parties

Pertemps Recruitment Partnership Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Corporation Tax Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether sums of money mistakenly paid by customers to Pertemps and not repaid are liable to corporation tax as trading receipts under section 18(3) ICTA 1988.

Ratio Decidendi

Overpayments received by Pertemps from customers arise from its trading activities and are receipts arising or accruing from its trade. The payments, made under a mistaken belief of liability for services supplied, are an inevitable incident of trade and are not held in a fiduciary capacity. Therefore, they constitute taxable trading receipts under Schedule D, Case I, ICTA 1988.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.