GLO-BALL GROUP LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Decision date: 19 April 2023
Neutral citation: [2023] UKFTT 435 (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
Glo-Ball Group appealed HMRC assessments denying £9,486.38 of Coronavirus Job Retention Scheme claims, arguing director-employee Michelle Dowler had been furloughed. The tribunal found most of her social-media posts during lockdown were "work" intended to generate income or enhance the employer’s goodwill, so she had not ceased all work for the required 21 consecutive days. The appeal was dismissed and HMRC’s assessments were upheld.
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: high
The tribunal applied a purposive construction of the Scheme: "work" includes any employee activity intended, directly or indirectly, to generate income for the employer or to enhance the employer’s goodwill or reputation, irrespective of whether it actually produces income; even a single instance of such work during the relevant period prevents furlough entitlement under the classic regime.
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 judgment suggested that continuation of pre-lockdown activities, even at reduced scale, supports treating those activities as work for the Scheme’s protective purpose, and noted that proportionality as to reduced scale does not alter liability for overclaimed payments (though it may be relevant to penalties).