G C Ware Electrics v Commissioners for Her Majesty's Revenue and Customs
Decision date: 30 April 2010
Neutral citation: Neutral citation not available
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 HMRC's cancellation of Mr Ware's CIS gross payment status for late tax payments due 31 July 2008 and 31 January 2009. The tribunal found he did not comply with those payment obligations, that regulation 32's 28-day exemption did not apply because of a prior relevant failure within 12 months, and that only the 2007/08 delay might have had a reasonable excuse while the 2008/09 failure did not; the appeal was dismissed.
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
A taxpayer who does not follow an agreed HMRC payment schedule or fails to pay the amounts allowed for further time will not be excused under s118(2), and the 28‑day exemption in regulation 32 is unavailable where there has been a prior relevant failure within the preceding 12 months.
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 notes indicate obiter observations that s118(2) can have retrospective effect in some circumstances but retrospective relief depends on payments having been made in accordance with any allowed further time; also that mere shortage of funds is not necessarily a reasonable excuse and that reasonable expectations about timely contact with HMRC and prompt action by advisers are relevant to excuse assessments.