Quayviews Limited v The Commissioners for HMRC
Decision date: 20 June 2022
Neutral citation: [2022] UKFTT 190 (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
Quayviews appealed three Schedule 55 late filing penalties for RTI periods (Nov 2020, Dec 2020, Jan 2021). The tribunal found the returns filed in a September 2020 batch were not within the relevant tax months but Quayviews had a reasonable excuse because HMRC guidance, correspondence and software reasonably indicated early filing would be permitted or accepted. The appeal was allowed and the three £100 penalties were quashed.
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
Where HMRC guidance and its software reasonably lead a taxpayer to believe that filing RTI returns earlier than the statutory tax month is permissible or will be accepted, that can amount to a reasonable excuse for failing to file during the tax month and negate liability for Schedule 55 late filing penalties; an employer’s genuine attempt to comply using HMRC’s tools and published guidance can be objectively reasonable in the circumstances.
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 commented that HMRC’s use of the term “success” to indicate receipt rather than correct filing is unclear and unhelpful, and it recommended HMRC update guidance, education letters and software to make clear there is a statutory limit on how early RTI returns may be submitted.