A High Court appeal by Income Plus Services over a £2m VAT bill has been rejected.

The company supplies invoicing, payment and administration services to self-employed hospital doctors, largely within the UK NHS, the court heard, and employs eight people in the Isle of Man.

It was appealing against a tribunal ruling in favour of Customs and Excise.

Appeal court judges have agreed with the tribunal that services provided between March 2014 and November 2017 were wrongly treated as exempt from VAT.

The court was told that IPS was introduced to doctors by recruitment companies and presently has 3,000 self-employed contractors (doctors) on its books, dealing with 300 recruitment agencies at any one time.

IPS said it was providing invoicing services to doctors but the Treasury said IPS was intended to operate as an intermediary company, and that it was not marketed as an invoicing company.

VAT is charged on the supply of goods and services.

The appeal was dismissed.