Ford Motor Company Limited v Her Majesty's Revenue & Customs

Facts

Ford Motor Company Limited determined in early 2004 to introduce the "Ford Bonus Scheme", a scheme designed to generate sales of Ford cars and to reduce the output tax payable on those sales. In May 2004 it sought a ruling from Customs as to the VAT liability of the scheme, providing full details including draft documents. Mr Dave Whitehead, Tax Specialist at Customs' Large Business Services, Automotive Sector–Basildon, wrote on 12 August 2005 maintaining his earlier ruling, recording his understanding that the appellant would complete one or more transactions using the proposed scheme as soon as possible subject to Consumer Credit legislation amendments, and stating that the appellant had a right of appeal to the Tribunal within 30 days, while warning that the Commissioners would apply to strike the appeal out if by the time the hearing was scheduled no details of an actual supply could be provided. The appellant purported to appeal that letter on 8 September 2005. Customs obtained an extension of time for their statement of case, and on 18 October 2005 sought a further extension; the Tribunal (Mr Wallace) directed service by 17 November 2005, but none was served. On 8 December 2005 Customs applied to strike out the appeal on the ground that the letter was not an appealable decision, the scheme not having been finalised or implemented. On 6 January 2006 a supply took place on the same basis as the draft documents.