Murdoch UK Ltd v Commissioners for Her Majesty's Revenue and Customs

Decision date: 18 January 2011

Neutral citation: [2011] UKFTT 62 (TC)

Overall AI summary confidence: medium

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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: medium

This appeal challenged HMRC’s refusal to backdate authorisation for the VAT Flat Rate Scheme to dates earlier than the date HMRC granted (1 June 2007). The Tribunal found HMRC’s refusal reasonable under the guidance (FRS 3300) because the trader had already calculated VAT under a different method and the prospect of paying less tax alone did not amount to exceptional circumstances. The Tribunal accepted that visiting officers had not advised the appellant about the Scheme but held that did not establish grounds for retrospective authorisation, and dismissed 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

Where a trader has already used a different VAT accounting method, HMRC can reasonably refuse retrospective authorisation to use the Flat Rate Scheme in the absence of exceptional circumstances; judicial review under section 84(4ZA) requires showing that the Commissioners could not reasonably have been satisfied in reaching their decision.

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 notes (following authority cited) that a visiting officer is not under a duty to raise the Flat Rate Scheme with traders. The Tribunal also observed a technical point that the effective date under the relevant regulation might have led to a later rather than earlier authorisation.

Warning

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