- The case involves the United Kingdom Upper Tribunal Tax and Chancery Chamber.
- It concerns Elphysic Ltd and others versus Revenue and Customs.
- The issue is about VAT and national insurance contributions.
- The case examines the power to de-register a company for VAT due to VAT fraud.
- It questions if directors must have known or should have known about the fraud.
- The tribunal decided there is no requirement for directors to have known about the fraud.
- HMRC’s pleading about the fraud was deemed sufficient.
- The case relates to the temporary labour sector and mini-umbrella companies.
- These companies employ temporary workers and handle tax and national insurance liabilities.
- They supply labour to intermediaries, who then supply it to recruitment agencies.
- They charge VAT at the standard rate but use the flat-rate scheme for accounting.
- They claim an employment allowance to reduce national insurance liabilities.
- The appellants, including Elphysic Ltd, sought to use the flat-rate scheme and employment allowance.
- HMRC de-registered the appellants from VAT.
Source: bailii.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
