Employment agency loses appeal over £15m VAT invoice dispute

Court rejects appeal by Liverpool employment agency disputing tribunal jurisdiction over HMRC’s right to demand evidence of compliant invoices for multiple transactions

FS Commercial Ltd headed to the Court of Appeal to appeal a decision by the Upper Tribunal handed down in January 2025, which upheld HMRC’s assessments under section 73 Value Added Tax Act 1994 for over £19m (preferred) and £15m (alternative) due to insufficient evidence of input tax and payment of consideration.

The First Tier Tribunal (FTT) ruled that its jurisdiction was supervisory and excluded invoices not provided to HMRC at the time of its decision. The Upper Tribunal agreed, stating the FTT could only consider facts before HMRC’s decision-maker.

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