Pickquick Carriers Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 17 August 2011
Neutral citation: [2011] UKFTT 553 (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
Pickquick Carriers appealed a £400 penalty for filing their 2009–2010 P35 online four months late. The Tribunal held that reliance on the company's book-keeper did not constitute a "reasonable excuse" and that the fixed month-by-month penalty was not disproportionate, even though the tax due had been paid. The appeal was dismissed and the penalty upheld.
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: low
The Tribunal treated reliance on an agent or book-keeper as not amounting to a "reasonable excuse" for late filing absent evidence of fraud or criminality by the agent; penalties under the statutory month-by-month scheme are directed at lateness of return submission (not payment of tax) and can be proportionate to the delay involved.
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 that HMRC is under no obligation to issue reminders for P35 returns and that penalty notices do not serve as reminders; it also observed that enforcement of information-collection duties is a statutory objective distinct from tax collection.
Warning
Chunk contains repeated and duplicated passages but facts and reasoning are consistent.