Sean Reed v Commissioners for Her Majesty's Revenue and Customs
Decision date: 28 January 2011
Neutral citation: [2011] UKFTT 92 (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
This appeal concerned whether Mr Reed was self‑employed or an employee for 2003/04–2004/05 and whether his Grimsby home or his rented Birmingham accommodation was his business base for determining deductibility of travel and subsistence. The Tribunal found he was self‑employed, that his home in Grimsby was his base as an itinerant worker, and that his travel and Birmingham accommodation expenses were incurred wholly, exclusively and necessarily in the course of his business, so the appeals were allowed (2005/06 had been conceded by HMRC).
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
Where a worker is itinerant and routinely directed from home to varying work sites, the home can be treated as the business base so that travel and subsistence incurred in reaching and staying near sites are deductible as incurred wholly and exclusively for the business. Renting local accommodation merely to reduce subsistence costs does not by itself convert that accommodation into the taxpayer’s business base.
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
It was noted (but not treated as determinative) that evidence of employer‑provided or wage‑deducted accommodation does not automatically establish those premises as the worker’s business base. Similarly, the existence of HMRC guidance and the parties’ failure to query employment status were mentioned as relevant factual indicators but not as dispositive of status.