This was an appeal against HMRC’s refusal to repay VAT amounting to £40,995.38 for the 04/17 VAT period and an assessment of £69,533.70 due for the 04/17 VAT period. 

The question for the Tribunal in this appeal was whether supplies of workers which the Appellant said were made to it by three companies involved in the refurbishment of office buildings were supplies received in respect of which it could reclaim input tax. 

The Appellant argued that those three companies, the “Intermediate Companies”, were set up as its contractors acting as “gang masters” to manage sub-contractors involved in the refurbishment of office buildings and made supplies of workers to the Appellant. 

HMRC argued that the Intermediate Companies did not make supplies to the Appellant. In fact supplies were made by the sub-contractor workers themselves, who were paid directly by the Appellant and who, as