Supply was of medical staff

The taxpayer supplied medical consultants to an intermediary agency which supplied the doctors to hospitals usually NHS trusts. It claimed this was an exempt supply of medical care (VATA 1994 Sch 9 gp 7) because it was providing medical care not staff. HMRC said the services were standard rated because the taxpayer was supplying staff.

The First-tier Tribunal and Upper Tribunal dismissed the taxpayer’s appeal so it escalated the matter to the Court of Appeal.

Lady Justice Whipple delivered the judgment. She said there was a distinction between supplies of staff on the one hand and supplies of services comprising what the staff actually did on the other. The First-tier Tribunal had considered the taxpayer's appeal by addressing that distinction. Having defined the issue in terms of whether the taxpayer was supplying staff or services the First-tier Tribunal and the Upper Tribunal considered control...