TC09596 - [2025] UKFTT 00895 (TC)

Given our findings on the effect of the contracts and the economic and commercial reality, we are satisfied that the fitters are the party making the supply of fitting services to the customer. We find that there is a ‘legal relationship’ between the fitter and the customer, which relationship involves the fitter providing fitting services to the customer (for which the fitter is solely liable). In return, the customer is liable to pay the fitter, and does in fact pay the fitter directly. The Appellant is not privy to that agreement. Applying the principles in Tolsma, the satisfaction of those mutual obligations represents ‘reciprocal performance’ and the sum received by the fitter represents ‘consideration’ for a supply of fitting services made to the customer. The consideration for the supply is not actually received by the Appellant and, therefore (applying the principles relevant to VAT) cannot form part of the taxable amount for the Appellant.

Accordingly, therefore, we resolve ‘the Supply Issue’ in favour of the Appellant and hold that the supplier of the fitting services is the independent fitter. Despite our conclusions on the Supply Issue, for completeness, we have determined to resolve the second issue in this appeal, given the detailed arguments presented by the parties.