Alan Rue (formerly trading as "Hermitage Clean Care") v Commissioners for Her Majesty's Revenue and Customs
Decision date: 24 March 2011
Neutral citation: [2011] UKFTT 205 (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
The appellant, Alan Rue, sought to challenge historical VAT assessments and related bankruptcy consequences by a notice of appeal dated 30 June 2010. The First-tier Tribunal concluded it had jurisdiction only if HMRC's 17 June 2010 letter disclosed an appealable decision, but HMRC subsequently confirmed the appellant had no outstanding VAT liability, so there was no appealable decision and the appeal was struck out. Historical complaints from c.1995–2001 were not shown to be appeals against identifiable decisions and, even if they were, permission to admit them out of time would have been refused because of the long delay and evidential difficulties.
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 that it lacks jurisdiction to hear an appeal where there is no appealable decision; a subsequent confirmation from HMRC that no liability exists removes the basis for an appeal. Separately, long delay combined with the absence or destruction of records and consequent evidential difficulties can justify refusing permission to admit historical matters out of time.
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 (non-decisively) that relatively small past VAT corrections that were later reversed would not have materially affected the bankruptcy outcome, and that round-sum payments are often allocated to the earliest debts rather than to specific historical liabilities, which can explain apparent arrears on older VAT accounts.