Zoe Shisha Events Limited v The Commissioners for HMTC
Decision date: 5 April 2023
Neutral citation: [2023] UKFTT 398 (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
Zoe Shisha Events Ltd appealed HMRC assessments totalling £14,895 alleging overclaimed CJRS payments for two employees. The Tribunal found the assessments were validly made and notified (despite being addressed to the director), accepted HMRC’s concession that the claim for Mr El Sayed was correct, but rejected the company’s contention that director Ms Muntean’s reference salary before 19 March 2020 was £3,000 and held it was £600. The first assessment was reduced to £7,735; the remainder of the appeal was dismissed.
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
An assessment addressed incorrectly (here to a director) does not automatically invalidate it if it is sent to the taxpayer’s contact/address and accompanying communication makes clear the company was assessed; and, for CJRS reference salary disputes, contemporaneous records (RTI submissions, bank statements, contemporaneous payslips) are decisive while retrospectively created payslips or late RTI amendments made after compliance checks are weak evidence of pre-cutoff salary changes.
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 criticised HMRC for carelessness in notification practice though this did not affect validity in the case, and noted that witness evidence inconsistent with prior contemporaneous documents will be treated with caution.