06 January 2026

D Nuttall UK Ltd V HMRC [2025] UKFTT 01600 (TC)

The First-tier Tribunal has allowed the taxpayer’s appeal against VAT assessments in D Nuttall UK Limited v HMRC.

D Nuttall UK Limited (‘DNUK’) provided haulage services to its clients.  The goods were transported with DNUK’s trailers but using trucks owned by a Romanian company, ROBO.  DNUK arranged and paid for the fuel used in the ROBO trucks and for the repair and maintenance of those trucks.  HMRC denied the input VAT claimed by DNUK on the fuel and the repair and maintenance services on the basis that the supplies were made to ROBO and not DNUK.

DNUK argued that both as a matter of the contractual arrangements between DNUK, ROBO, and the suppliers, and as a matter of economic and commercial reality, the supplies were made to it rather than ROBO.  The FTT analysed the contractual arrangements and held that, in light of the contract in place between DNUK and ROBO, when DNUK entered into contracts with the suppliers it did so on terms that the fuel and services would be provided to ROBO (even though ROBO was not itself a party to the contract with the supplier).  Crucially, however, the FTT agreed with DNUK’s characterisation of the economic and commercial reality as ROBO making its trucks available to use in DNUK’s business for a fixed fee, with DNUK having control of the trucks and bearing the costs of their use.  As a result, the supplies were made to DNUK and the input VAT was deductible.

The case provides an interesting exploration of the interaction between contractual arrangements and economic reality, and a salutary reminder of the importance of grappling with the particular facts of each case in determining the economic reality.

Richard Vallat KC and Joshua Stevens acted for the taxpayer.

You can read the judgment here.