Annette Noden and Peter Noden v Commissioners for Her Majesty's Revenue and Customs
Decision date: 28 March 2011
Neutral citation: [2011] UKFTT 214 (TC)
Overall AI summary confidence: medium
Short overview
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AI confidence in this short overview: medium
This appeal concerned HMRC's withdrawal of the Nodens' CIS gross payment status on the basis of alleged compliance failures in the 12‑month qualifying period. The First-tier Tribunal found the late PAYE/CIS payments were within the Regulation 32 tolerances and that a subsequent successful loss‑relief claim extinguished the disputed tax liabilities, so the Nodens did not fail the Schedule 11 compliance test and there was no reason to expect future non‑compliance; the appeal was allowed.
Ratio decidendi
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AI confidence in this ratio decidendi summary: medium
Where payments fall within the tolerances specified in Regulation 32 of the CIS Regulations, they do not constitute a breach of the Schedule 11 compliance test for gross payment registration; and where a later successful loss‑relief claim extinguishes the tax liabilities initially said to be late, those alleged late payments cannot be treated as establishing non‑compliance in the qualifying period.
Obiter dicta
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AI confidence in this obiter dicta summary: medium
The Tribunal stated it had full appellate jurisdiction to substitute its own judgment rather than only supervisory review, and commented on proportionality concerns in removing gross payment status (including differential effects on partnerships versus companies), but treated proportionality as not decisive in this case.
Warning
- The chunk contains extensive duplication and repetitive text. The provided notes contain duplication and repetitive text; they may not include the full reasoning of the judgment.