Linda Adelson and David Jamieson consider the application of the principle of economic reality in practice
Many businesses in the financial services sector (and other partially exempt businesses) will have been very happy with the First-tier Tribunal’s judgment in Reed Employment Ltd (TC01069) that Reed was making a supply of introduction services rather than supplying temporary staff.
If upheld on any appeal (although the rumours are that HMRC have not yet appealed against this aspect of the decision) the value of Reed’s supply (and potentially that of other employment businesses) is not the total sum received by...
