Richard Monks v The Commissioners for HMRC
Decision date: 4 October 2023
Neutral citation: [2023] UKFTT 853 (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 challenged the validity of an HMRC notice of enquiry dated 27 January 2022 and a Schedule 36 information notice dated 3 March 2022. The Tribunal held the enquiry notice was not delivered timeously and so was invalid, but it upheld the Schedule 36 information notice as lawfully issued, proportionate, and limited to the 6 April 2019–5 April 2020 period. The effect is that there is no valid enquiry, but the information notice stands and is final.
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 an HMRC document is shown by a Post Office first-class postage receipt to have been posted, the statutory presumption of service may apply but can be rebutted by credible contemporaneous evidence that the recipient received the document later; and where Condition B of paragraph 21 Schedule 36 is properly established (for example by Companies House entries and an apparent shortfall between declared income and lifestyle), HMRC may lawfully require, as reasonably required and proportionate, records (including bank records) to ascertain a taxpayer’s tax position for the relevant period.
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 treated HMRC internal guidance (EM1506) as best practice but not legally binding, and observed that evidence of general postal disruption (such as COVID‑19) does not itself rebut deemed service absent specific persuasive linkage to the taxpayer’s circumstances.