Freshwater Systems and Services (UK) Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 19 May 2011
Neutral citation: [2011] UKFTT 364 (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
Freshwater Systems appealed a £180 penalty for allegedly filing its 2009/10 P35 late. The appellant claimed online submission within the deadline but HMRC records showed no receipt or confirmation until 29 January 2011; the Tribunal found on the balance of probabilities that no return was received by the filing deadline, that no reasonable excuse was shown, and dismissed the appeal, confirming the £180 penalty.
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
An employer does not discharge the statutory obligation to file by merely attempting in good faith to submit an online return if HMRC’s system did not in fact receive the return; where the online system would be expected to generate a confirmation and record receipt, the absence of such a confirmation and of a receipt record supports a finding that no submission occurred and justifies a late-filing penalty.
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 that HMRC is not obliged to issue reminders and that absence of a reminder does not constitute a reasonable excuse for late filing; it also noted that adequate guidance is available and that an ordinarily diligent employer can be expected to submit an online return.