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Police must pay VAT on supplies of staff

11 September 2009

Sussex Police must pay VAT on supplies of staff to two charitable funds which support police officers before and after retirement, the VAT tribunal has ruled.

Tribunal judge Nicholas Aleksander said Sussex Police provided the funds not only with office facilities, accounting software and IT support, but also with staff. The employment costs were paid by the funds on a monthly basis.

Sussex Police argued that because the staff were acting as agents for the funds, there was no supply of services which was liable to VAT.

Judge Alekdsander held that there was no doubt that the staff were employed by Sussex Police since their employment particulars specified the police authority as their employer, their pay was based on the police pay scale and they were members of the police pension fund.

“If Sussex Police engaged the individuals as agents on behalf of the funds, the employment rights act statements would need to state this, which they do not.”

The police authority’s appeal was dismissed.

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Financial services & Tax Police & Prisons Discrimination Agricultural