Phillips v Revenue & Customs [2010] UKFTT 262 (TC) (10 June 2010)

Phillips v Revenue & Customs [2010] UKFTT 262 (TC) (10 June 2010)

Mr Phillips was not trading through properly constituted companies during the relevant period; he appropriated the business and used a defunct VAT number, making him personally liable for VAT registration and assessment. The corporate veil did not apply as there was no functioning company, and the appeal was dismissed.

Citation
[2010] UKFTT 262 (TC)
Parties
Appellant: Stephen Lloyd Phillips; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
10 June 2010
Procedural Posture
VAT Compulsory Registration Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Registration, Corporate Veil, Company Dissolution, Tax Assessments, Sole Trader Liability
Tax Law Company Law VAT Registration Corporate Veil Company Dissolution Tax Assessments Sole Trader Liability

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Parties

Stephen Lloyd Phillips

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Compulsory Registration Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether Mr Phillips should be compulsorily registered for VAT as a sole trader for the relevant period
  2. 2 Whether the VAT assessment against Mr Phillips is valid given his use of multiple companies and dissolved entities
  3. 3 Whether HMRC can disregard the corporate veil in these circumstances

Ratio Decidendi

Mr Phillips was not trading through properly constituted companies during the relevant period; he appropriated the business and used a defunct VAT number, making him personally liable for VAT registration and assessment. The corporate veil did not apply as there was no functioning company, and the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Mr Phillips to be registered for VAT with effect from 24 September 2003
  • VAT assessment of £138,833 for the period 24.9.2003 to 31.10.2007 confirmed to best judgement