John Strange v The Commissioners for HMRC
Decision date: 27 March 2025
Neutral citation: [2025] UKFTT 298 (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
John Strange appealed a Personal Liability Notice issued by HMRC making him personally liable for his company's unpaid National Insurance contributions for 06/08/2016–05/06/2018. The tribunal found there was an underpayment of NICs, that Strange was an officer (sole director and sole signatory) and that the failure to pay was attributable to his neglect, and upheld the PLN for £103,420.89, dismissing 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 applied the legal test for a PLN and concluded that a director who is the sole signatory, controls company payments and prioritises payments to himself over statutory PAYE/NIC obligations can be found negligent so as to render the director personally liable under a PLN; the absence of the appellant at the hearing did not prevent reliance on contemporaneous notes and other evidence to make findings.
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 decision remarks (obiter) that repeated delays and extensions sought by a director to inspect or obtain documents, when not followed by production of those documents, weigh against the director in assessing cooperation and culpability, and that mere financial difficulty, without evidence justifying non‑payment of statutory deductions, does not excuse neglect.