Summary
This was an appeal resulting from the First Tier Tribunal (FTT) decision in Reed Employment Ltd [2011] UKFTT 200 (TC). In essence the FTT had found that VAT was only due on the commission received by the employment agency rather than the full charge including the salaries, etc. The Appellant made a claim for £11 million to HMRC for overpaid VAT as a result of this decision but the claim was rejected. As a result of this the Appellant appealed to the FTT.
HMRC argued that the Appellant was liable to account for VAT on the full charge paid by the clients because it supplied the services of the temporary staff and was not merely supplying the service of introducing temporary staff to its clients.
Background
The FTT said in its outline of the argument: ‘If Adecco merely supplied introductory
