David Leslie Skinner t/a DLS Packaging v Commissioners for Her Majesty's Revenue and Customs
Decision date: 11 February 2010
Neutral citation: [2010] UKFTT 64 (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
This appeal concerned Mr Skinner's request that HMRC back-date his admission to the VAT flat‑rate scheme from 2009 to 2003. HMRC admitted him only from 1 January 2009 and refused retrospective admission for periods already accounted for absent exceptional circumstances. The Tribunal found HMRC's exercise of discretion reasonable, rejected the argument that HMRC had a duty to advise him he was overpaying, and dismissed the 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: medium
The Tribunal held that under the relevant flat‑rate scheme regulations admission may be back‑dated only by agreement and that limiting back‑dating to the accounting period in which the application is made is consistent with reg 55B(1); retrospective admission for periods already accounted for will not be granted except in exceptional circumstances, and the Tribunal will not overturn a reasonable exercise of HMRC's discretion.
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 expressed considerable doubt that HMRC owe an individual duty to advise traders that they are paying more tax than they might under alternative arrangements beyond general publicity of the scheme; it also noted that alleged failures of such advisory duties are matters for the Revenue Adjudicator rather than for this Tribunal's jurisdiction.