In The Marketing Lounge Partnership v HMRC [2015] UKFTT 219 (13 May 2015) the FTT found that supplies of promotional campaign management services were single standard rated supplies.
The Marketing Lounge’s business was sales promotion and the assessment related to five promotional campaigns for its clients which were major public companies. These campaigns offered various incentives to existing and new customers including ‘one night free’ hotel offers free spa and beauty treatments etc.
The Marketing Lounge contended that it provided two supplies: a zero rated supply of printed material such as guide books listing hotels; and a standard rated supply of ‘fulfilment services’ which was ancillary. The latter supply involved the management of the incentive scheme; for instance the manning of telephone helplines. Both supplies should therefore be zero rated. HMRC considered however that the whole supply should be...
