Summary
The appellant supplied fixed and mobile telephones, pay TV and broadband internet access services to retail and commercial customers. This appeal is only concerned with supplies to retail customers. Between 1 January and 30 April 2014, the appellant offered most of its retail customers a 15% discount on certain services if they paid their bills within 24 hours of receiving them. This was called the speedy payment discount (SPD). The appellant considered that the prompt payment discount, then in force, applied to all these supplies even though only 3% of customers took advantage and accounted for VAT on the discounted amount. HMRC took the view that the prompt payment discount did not apply and assessed the appellant for in excess of £10m.
Background
The appellant appealed to the First-tier Tribunal (FTT) which dismissed its appeal, and the appellant obtained permission to appeal to the