DDK Projects Limited v The Commissioners for HMRC
Decision date: 16 October 2025
Neutral citation: [2025] UKFTT 1251 (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
DDK Projects Ltd missed a VAT payment of £629,251.95 due 7 March 2024 and paid 32 days late after receiving HMRC's notice, attracting penalties of £25,307.98. The First-tier Tribunal accepted DDK's evidence that a combination of the director's unexpected full‑time caregiving after a traumatic birth, the outsourced bookkeeper's sudden compassionate leave, and HMRC's delayed letter together amounted to a "reasonable excuse" until the company received HMRC's notice; DDK paid the same day and the appeal was allowed. Penalties were therefore set aside.
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: medium
The Tribunal held that several adverse events which individually might not suffice can, in combination, constitute a reasonable excuse if they objectively prevented timely payment, and that where the reasonable excuse ceases, payment made on the day the taxpayer became aware (here, upon receipt of HMRC's notice) can remedy the default without unreasonable delay.
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 (non‑bindingly) that it is understandable for a first‑time parent to be traumatised and to prioritise caregiving in a way that affects capacity to supervise company finances, and that reliance on an outsourced bookkeeper may be reasonable where a competent firm was engaged and systems had previously worked reliably.
Warning
The chunk repeats large sections verbatim and is therefore somewhat noisy and duplicated. notes are somewhat noisy and contain duplicated material but appear to set out the core findings.