DP Langan Limited v The Commissioners for HMRC
Decision date: 7 August 2025
Neutral citation: [2025] UKFTT 958 (TC)
Overall AI summary confidence: high
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
DP Langan Ltd appealed HMRC assessments that disallowed parts of its Coronavirus Job Retention Scheme (CJRS) claims for two fixed‑rate employees whose pay was increased after 19 March 2020. The Tribunal held the employees' reference salaries were the amounts payable in the latest pay period ending on or before 19 March 2020, paragraph 7.12 did not allow using later pay rises to increase reference pay, and the appeal was dismissed with the assessments upheld as amended (including small additional employer NICs and claim percentage corrections).
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
For fixed‑rate employees the reference salary for CJRS claims is the amount payable in the latest salary period ending on or before 19 March 2020 (paragraph 7.7), and paragraph 7.12 only applies where an original payment for a period was less than 80% of that reference salary and a subsequent further payment is made in respect of the same earlier period; it does not permit treating later separate payments or post‑19 March pay rises as increasing the reference salary.
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 ministerial statements (e.g. the Chancellor’s speech) do not provide a clear or necessary aid to interpret the Direction where the Direction’s wording is not ambiguous or absurd, and noted that while employers may give pay rises, such increases do not change the amount reclaimable under the CJRS when the Direction fixes reference pay.