Staysure.co.uk Limited v The Commissioners for HMRC
Decision date: 21 April 2022
Neutral citation: [2022] UKFTT 134 (TC)
Overall AI summary confidence: high
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: high
Staysure appealed HMRC's VAT assessment and penalty arising from services provided by related Gibraltar company Intervest. The Tribunal found Intervest's activities amounted to a single exempt insurance-intermediary supply so Staysure was not required to register and the global assessment was invalid; alternatively, the assessment was time‑barred except for the final three-month period. The Tribunal also found Staysure had no reasonable excuse for late notification but mitigated any penalty to £159,171 for cooperation.
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: high
The Tribunal concluded that (1) services comprising targeted marketing, operation of a bespoke quote engine and the provision of suitable leads can together form a single supply characteristic of insurance intermediary services and thus attract the VAT exemption; and (2) for the purposes of VATA s73(6) the phrase "prescribed accounting period" refers to the statutory three‑month periods, so limitation runs from the end of each three‑month period rather than from a directed long first accounting period.
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 a Notice of Appeal filed before a return exists is invalid and cannot be retrospectively validated by filing the return later, although the Tribunal may grant permission for a late appeal in the interests of justice; it also discussed HMRC guidance and case law principles relevant to penalty mitigation, noting cooperation can justify reduction but mitigation is fact‑specific.