Tax Law · First-tier Tribunal (Tax)
Pertemps Limited v The Commissioners for HMRC
Checked against the judgment on 9 September 2026 · how we verify
Facts
Pertemps Limited, the representative member of one of the VAT groups within a large and well-regarded recruitment group, appealed against two decisions of HMRC dated 2 and 9 January 2025 imposing late payment penalties of £115,741.02 and £830.03 in respect of VAT for the period 10/24, charged under Schedule 26 to the Finance Act 2021. The group's main trading business supplies flexible workers, with peak trading in the last quarter of the calendar year. Following the award of a Managed Service Provider contract by a significant customer in Q3 2024, covering new geographical areas, weekly supply to that customer rose from about 6,000 workers in 2023 to about 9,000 in 2024, and the debt owed by that customer rose to £61.8m by the end of December 2024, exceeding a bank cap which had been raised from £37m to £42m and reducing the available facility. The VAT return was submitted on 29 November 2024 and the balancing payment fell due on 30 November 2024. Pertemps paid £6.5m, retaining funds to meet the following week's payroll of £8.3m, and discharged the balance by instalments, paying the remainder on 3 January 2025. It contended it had a reasonable excuse and, alternatively, that a special reduction should be made.
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