Greenwich Contracts Limited v The Commissioners for HMRC
Decision date: 12 October 2023
Neutral citation: [2023] UKFTT 874 (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 whether HMRC lawfully issued a DOTAS s310D notice and allocated a scheme reference number (SRN) in respect of arrangements involving Greenwich, Umbrella Contracts (UK) Ltd and Integra that routed part of contractors’ pay outside PAYE. The First-tier Tribunal found HMRC had become aware of a qualifying transaction after the relevant commencement date, reasonably suspected the arrangements were notifiable and that Greenwich was a promoter, and dismissed Greenwich’s appeal, affirming the SRN allocation.
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 becoming aware of a single qualifying transaction or proposal after the commencement date can satisfy the statutory D(1)(a) threshold for issuing a s310D notice; that arrangements meeting the prescribed hallmarks (premium fee, a standardised tax product and routing employment income via third parties) are notifiable under s306; and that an entity performing ordinary umbrella-company functions may be reasonably suspected to be a promoter where those functions amount to organisation or management of the arrangements.
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 doubt about importing burden-of-proof analogies from other regimes (such as discovery assessments) into DOTAS, noting the objectives of the DOTAS regime may inform allocation of burdens; and observed conceptually that the duty to notify under s311A is distinct from the decision to allocate an SRN under s311(3), though notification issues were not determinative here.