Top-Notch Accountants Limited v The Commissioners for HMRC
Decision date: 2 June 2023
Neutral citation: [2023] UKFTT 473 (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
Top-Notch Accountants Ltd appealed an HMRC assessment seeking recovery of alleged overpaid Coronavirus Job Retention Scheme (CJRS) grants for one employee, principally disputing the dates on which RTI/FPS submissions including that employee were made. The Tribunal accepted HMRC's RTI records as clear and reliable, rejected the appellant's bank statements and RTI confirmations as inconsistent and not credible, and found the first RTI for the employee was lodged on 16 April 2020 (not before 19 March 2020). The appeal was dismissed and the assessment was varied to £14,673.47.
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 entitlement to CJRS payments depends on RTI/FPS being submitted by specified relevant days, objectively verifiable HMRC RTI records will determine entitlement; inconsistent or post hoc altered documentary evidence may be judged not credible and cannot displace HMRC's records, justifying recovery under Schedule 16 FA 2020.
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 observed that it lacked jurisdiction to entertain an argument that an employee was "always in employment" without compliance with the statutory RTI condition, and noted that documents created or altered after HMRC enquiries tend to indicate production for the purposes of the enquiry rather than contemporaneous accounting.