Owain Thomas QC was instructed by KPMG in Inhealth (London Limited) v HMRC [2016] UKFTT 289 (TC) which concerned the VAT treatment of salary costs invoiced to Inhealth relating to the operation of a patient referral centre for diagnostic services. The First-tier Tribunal (FTT) agreed with Inhealth that the contract which the parties had entered into with respect to the patient referral centre did not reflect the reality of the relationship between the parties to this joint venture and the FTT held that Inhealth was correctly not charged VAT on the costs of its joint employees.

In reaching this finding, the FTT distinguished a previous Tribunal case, CGI Europe, relied upon by HMRC who were represented by Sarabjit Singh.

Read judgment here.