Andrew Newall v The Commissioners for HMRC
Decision date: 11 December 2023
Neutral citation: [2024] UKFTT 47 (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
This appeal concerned HICBC discovery assessments for 2017/18–2019/20 (total £2,248) and associated Schedule 41 penalties (£604.08). The tribunal found HMRC made a valid discovery on 28 April 2021 and issued assessments in time. The appellant had a reasonable excuse for non-notification only until he received HMRC's nudge/final reminder by 13 December 2019; thereafter he failed to engage within a reasonable time and the penalties were upheld. 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: high
A taxpayer who genuinely did not receive earlier HMRC notifications may have a reasonable excuse for failing to notify HICBC liability up to the point they are put on notice by an effective nudge/final reminder; once put on notice, failure to engage within a reasonable period removes that reasonable excuse, permitting valid discovery assessments under section 29 TMA (and related amendments) if issued within the statutory periods.
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 endorsed use of the Perrin four-step approach to assessing "reasonable excuse" and applied the objective test from Clean Car Co/Archer to a PAYE-only taxpayer; it noted authorities such as Goodall and Jacques as contextual guidance that receipt of a nudge letter is a strong indicator that no reasonable excuse remains.