TC09596 - [2025] UKFTT 00895 (TC)

Turning to the circumstances of this appeal, HMRC’s position is that there is a single supply of flooring and fitting services made by the Appellant to the customer. On the contrary, the Appellant’s position is that the supply of fitting was made by the fitter to the customer, separately from the sale of the flooring.

In determining this appeal, we adopt the three-stage approach adopted by the UT in All Answers by:

In summary, having considered the contractual documentation, we are satisfied that there were three distinct agreements in play in this appeal. The first agreement was between the Appellant and the customer, which was entered into at the point of sale (of flooring) on the shop floor when the goods were sold. The second agreement was between the Appellant and the fitter, which dealt with the cost of fitting according to market rate(s). The third and final agreement was between the customer and the fitter, which dealt with payment for fitting services (which was direct to the fitter from the customer). We will explore each of these in greater detail later. We are further satisfied that there were two separate supplies, the first of which comprised of the supply of goods (i.e., carpets and other flooring) by the Appellant to the customer, and the second of which comprised the supply of services (fitting) by the fitter to the customer. We give our reasons for so finding below.

The Appellant’s Terms and Conditions were as follows: