Waynefleet Limited v The Commissioners for HMRC
Decision date: 8 August 2023
Neutral citation: [2023] UKFTT 710 (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
Waynefleet applied under VATA s.84(3B) for permission to prosecute an appeal without paying or depositing disputed VAT of £170,344.78, claiming payment would cause hardship. The tribunal applied established hardship principles (Elbrook), found on the evidence at the hearing that the company had no immediately or readily available resources and that using available funds would itself cause hardship, and allowed the application so the substantive appeal may proceed without deposit. The decision records factual findings about bank balances, accounts and prior payments and gives standard appeal directions.
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: low
The tribunal applied the hardship enquiry as at the date of the hearing, requiring the appellant to show inability to pay the whole disputed sum without causing hardship; the focus is on immediately or readily available resources (including borrowings only if immediately accessible with minimal formality), and the burden of proof lies on the appellant.
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 observes (as guidance rather than binding ratio) that payments of funds to satisfy pre‑existing creditors may be relevant to whether a taxpayer has deliberately put itself in a position of incapacity, and that the mere existence of cash or realisable resources is not determinative if deploying them to pay would itself cause hardship.