1-4-All Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 23 February 2010
Neutral citation: [2010] UKFTT 91 (TC)
Overall AI summary confidence: medium
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: medium
1-4-All Ltd appealed HMRC’s refusal to repay input VAT for period 09/07, based on an alleged purchase from Yaadain Ltd of a childcare licence/education pack. The First-tier Tribunal found the appellant produced only word‑processed documents and no contracts, bank statements, registration or commercial evidence and therefore failed, on the balance of probabilities, to prove the underlying supply or that it related to its business. The appeal was dismissed and the input tax disallowed; no costs were awarded.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
Where an appellant relies on a document purporting to be a VAT invoice, that alone does not entitle recovery of input tax; the appellant must prove, on the balance of probabilities, that the underlying supply took place and had commercial substance. If the appellant fails to produce supporting business records or evidence of value received, the tribunal may conclude the transaction is contrived and disallow input tax.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal observed that the prospect of a VAT refund appeared likely to be important to funding the alleged agreement, which suggested a motive for contrivance; it also noted absence of regulatory registration and lack of evidence of trading activity (bank statements, follow‑up letters, use of materials) which undermined the appellant’s case.