Claire O'Hare v The Commissioners for HMRC

Decision date: 16 October 2024

Neutral citation: [2024] UKFTT 921 (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 case concerns discovery assessments issued by HMRC to Mrs O'Hare for child benefit charge years 2017/18–2019/20 after HMRC concluded she had adjusted net income above the HICBC threshold and had not notified or filed. The Tribunal found HMRC's 9 September 2021 letter (not received by Mrs O'Hare but read to her on a phone call) did not communicate a suspension of work, so the assessments fell within the FA 2022 retrospective protection and were validly made. Two earlier discovery assessments and penalties were allowed (out of time or withdrawn), but the remaining discovery assessments totalling £3,452 were upheld and the appeals dismissed.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

A communication stating HMRC are “working to understand the impact” of another decision does not necessarily amount to notification that HMRC have suspended work; absent a clear communicated suspension before the FA 2022 cut‑off, discovery assessments can remain protected by the retrospective amendment and be validly raised where HMRC had a reasonable belief of an insufficiency of tax.

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 declined to decide whether reading the contents of a letter over the phone can constitute statutory “notification” within the relevant timeframe, and made remarks that fairness complaints about delay or HMRC publicity do not alter statutory time limits—neither point being determinative of the outcome.