Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Legitimate agreement

01 May 2015
Issue: 4499 / Categories: Tax cases , VAT

Southern Cross Employment Agency Ltd v CRC, Upper Tribunal

The taxpayer company agreed with HMRC that the supply of dental nurses to dentists was exempt from VAT.

The business an employment agency then claimed repayment of VAT for the period 1998 to 2001 and the Revenue paid.

Following the tax department’s acceptance that the three-year limitation period had been unlawful the taxpayer claimed repayment of VAT for the period 1973 to 1997.

HMRC repaid 74% of the amount claimed under a compromise agreement. The tax authority later decided the taxpayer had not been entitled to the repayment because the supplies were not of care or medical care and were not exempt.

The Revenue sought to recover the repayment and the taxpayer appealed saying the repayment had been made under a contractual agreement.

HMRC said they were barred by VATA 1994 s 80 from entering into any such agreement; such an...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon