TC09596 - [2025] UKFTT 00895 (TC)
First-tier Tribunal (Tax Chamber)

TC09596 - [2025] UKFTT 00895 (TC)

Fecha: 16-May-2025

The third agreement: between the Appellant and the fitter

The third agreement: between the Appellant and the fitter

190.

In terms of the arrangement between fitters and the Appellant, there was an attempt to introduce a written agreement entitled “Introduction Agreement with Fitter”. This was devised to describe, and put in writing, the fitter referral service provided by the Appellant and the fitting services that the fitters provide directly to the customers Under the agreement:

(1)

Clause 1’ provides that the Appellant will sell floor coverings to customers and may introduce the customers to fitters with a view to the fitter entering into a contract with the customer to fit the goods. The Appellant promised to provide the fitter with a copy of the Invoice to the customer identifying the customer and describing the goods.

(2)

Under ‘Clause 2’, in consideration for such introduction, the fitter agreed to offer the customer the fitting service on the terms and conditions set out in ‘Clause 4’; those terms being (subject to some minor differences) the ‘Fitting Service Terms and Conditions’ for the estimated fitting price and any surcharges stated on the customer Invoice so long as the estimated fitting price accords with the “agreed basis for estimation” set out in ‘Clause 5’. The agreed basis of estimation could be varied by agreement between the Appellant and the fitter from time to time. Also, under ‘Clause 2’, the fitter is to provide the terms in writing to the customer to sign and retain a copy of that for 12 months.

(3)

Pursuant to ‘Clause 3’, as soon as reasonably practicable following the Appellant’s introduction of the fitter, the latter is to make contact with the customer with a view to agreeing the fitter’s contract with the customer for the fitting service and for making practical arrangements for performance of it.

(4)

Clause 4’ sets out the terms and conditions which form the basis of the contract between the customer and the fitter.

(5)

Clause 5’ sets out the “Agreed basis of estimation”, comprising a number of prices per m2 according to flooring type, and an indicative stair surcharge, with prices in respect of the removal of existing flooring and moving furniture being as agreed from time to time.

(6)

Clause 6’ provides that the Appellant has no liability to pay or guarantee payment by the customer of any amount due from the customer to the fitter in respect of the fitter’s fitting service, and that it is for the fitter to recover any such amount direct from the customer.

191.

The fitters did not, however, want to be tied down, or held to any formal arrangement. This supports the view that the fitters were not paid, contracted or employed by the Appellant. This also supports the view that there was no agency relationship. Miss McArdle however referred Mr Newton to the Facebook job alert for fitters that was included in the documents before us. We are, however, satisfied that the job alert does not support any finding that the fitters were hired/employed by the Appellant. The incontrovertible facts of this appeal are that the fitters were not on the Appellant’s payroll and received no payment from the Appellant, so this was not a recruitment process.