Gareth Evans v The Commissioners for HMRC
Decision date: 2 October 2023
Neutral citation: [2023] UKFTT 869 (TC)
Overall AI summary confidence: medium
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: medium
This appeal concerned a Schedule 36 information notice served on Mr Evans about his employment with Total Recruitment Services Ltd and suspected PAYE avoidance. The First-tier Tribunal held HMRC were genuinely carrying out a good‑faith check of Mr Evans' individual tax position and that, with two narrow variations to the notice, the information sought was reasonably required. The varied notice was confirmed and Mr Evans was ordered to comply within 28 days.
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 Tribunal treated as decisive that Schedule 36 powers may validly be exercised where HMRC are conducting a genuine, good‑faith enquiry into an individual taxpayer’s tax position even if HMRC also have wider deterrence or scheme‑targeting aims; and that HMRC may reasonably require information from the taxpayer first in employment‑related enquiries rather than being obliged to begin with the employer or third parties.
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 indicated, obiter, that Article 6 privilege against self‑incrimination is unlikely to be engaged at an early investigative stage and becomes material only if criminal charges or prosecution follow; and that PAYE RTI data and tax returns may be insufficient to resolve questions where promoter arrangements are designed to suppress reportable employment income.