Mr M Manders v Commissioners for Her Majesty's Revenue and Customs
Decision date: 2 July 2010
Neutral citation: [2010] UKFTT 313 (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
Mr Manders appealed HMRC's disallowance of motor expenses for 2006–07 in respect of operating a catering trailer. The Tribunal found his base of trading was the markets (principally Chelford), not the Showman's Yard where the trailer was stored, and therefore travel from home to the markets (via the yard) was not wholly and exclusively for trade and was not deductible. The Tribunal allowed travel to the yard on non‑trading days and varied the Completion Notice to permit an additional £615, resulting in allowable motoring expenses of £1,015 and additional tax/NI due.
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
The decision treats the taxpayer's base of operations as the place where he actually carried on trading (the markets); travel from home to that trading location is travel to the place of business and may have a dual (non‑deductible) purpose. Facilities used merely for storage/preparation (the Showman's Yard) can be incidental to the trade and not the trader's base for travel‑deduction purposes.
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 noted the proper inquiry focuses on where the taxpayer actually traded rather than where he could have traded. It also recorded the submission that hiring a third party to transport the trailer might lead to a different deductibility outcome, but did not decide that point.