Opus Labour Services (In Liquidation) & Anor v The Commissioners for HMRC

Decision date: 9 December 2022

Neutral citation: [2022] UKFTT 470 (TC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This case concerns a late application by the appellants to opt out of the complex-category costs regime after they missed the 28-day opt-out deadline for four joined appeals. The Tribunal applied the three-stage Denton test, found delays of 116 and 63 days serious, accepted the delay was due to the representatives' oversight but held that was not a good reason, and refused relief so the late opt-outs were denied. The Tribunal noted parties may apply for permission to appeal.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

The Tribunal treated an application to extend time to opt out of the complex-category costs regime as requiring assessment under the three-stage Denton-style test for relief from sanctions, and held that forgetfulness or oversight by a representative, without more, does not constitute a good reason to excuse significant non-compliance with a fixed 28-day opt-out deadline.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The Tribunal observed that the effect of delay on the conduct of the case is a matter for the third stage of the Denton-style evaluation rather than the assessment of seriousness at stage one, and that even absent direct prejudice to the respondent, the interests of the wider tribunal system and the need for compliance with time limits can justify refusing relief.