E Moss Limited v Her Majesty's Revenue & Customs

Facts

E Moss Limited, which owned the Scholl business, appealed against two decisions of Her Majesty's Revenue and Customs dated 1 August 2003 and 3 June 2005. Scholl provided chiropody and foot care services through its shops, employing at any one time around 120 chiropodists, some registered under the Professions Supplementary to Medicine Act 1960 (later the Health Professions Order 2001) and some not. Supplies made by the unregistered chiropodists had been treated as standard-rated. The appellant made voluntary disclosures claiming £734,656 for the period from May 2000 to June 2002 and £655,944 for the period from July 2002 to February 2005, on the footing that those supplies were exempt because they were directly supervised by registered chiropodists, both in-branch and through Scholl's senior clinicians and clinical auditors. The Commissioners refused both claims, taking the view that the visits, telephone availability, record checks and twice-yearly clinical audits did not amount to direct supervision, and that no supervision had in any event been shown to be required. An earlier hearing on 22 June 2004 was abandoned at the appellant's request, and a re-listed hearing on 15 March 2005 was adjourned when the appellant advanced a further argument based on the Sixth Directive. The tribunal heard both issues together.