Dr Harry Nduka v The Commissioners for HMRC
Decision date: 15 May 2023
Neutral citation: [2023] UKFTT 420 (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
Dr Harry Nduka appealed HMRC's disallowance of most of his 2016–17 self‑assessment employment expense claims. The Tribunal found his evidence sparse and inconsistent, allowed only a £499 deduction for an RCOG subscription, and dismissed the remainder of his claimed expenses and the argument that an earlier HMRC enquiry invalidated the later enquiry. The case was remitted to HMRC to recalculate tax for 2016–17 with the £499 deduction.
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 the statutory test that employment expenses are deductible only if incurred wholly, exclusively and necessarily in the performance of employment duties; on the facts, personal legal costs, accommodation, dental, childcare, most travel/commuting and unsubstantiated training or equipment costs did not meet that test and were disallowed. The Tribunal also treated legal costs incurred to enable the employee to continue in employment (for example to defend reputation) as personal and not incurred "in" the performance of duties.
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 noted that lack of contemporaneous documentary evidence, inconsistent claim schedules and unexplained alteration/removal of dates from documents materially weaken an appellant's case; these evidential observations were expressed as guidance on assessing credibility and proof but do not form the primary legal ratio.