Alan Kenyon v Commissioners for Her Majesty's Revenue and Customs
Decision date: 28 January 2011
Neutral citation: [2011] UKFTT 91 (TC)
Overall AI summary confidence: medium
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: medium
This appeal concerned whether a self‑employed pipe fitter (Mr Kenyon) could deduct travelling and subsistence expenses and whether HMRC could raise out‑of‑time discovery assessments. The Tribunal found Mr Kenyon's home was his base so travel to varied sites was incurred wholly and exclusively for the trade and allowed the travel costs, but disallowed bed-and-breakfast accommodation/subsistence as not wholly and exclusively for business. The Tribunal also held that HMRC validly opened enquiries in later years and could make discovery assessments for earlier years where negligence in subsequent returns was found.
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
Where a self‑employed trader organises work from home and habitually returns there between assignments, travel from home to varying work sites may be deductible as incurred wholly and exclusively for the trade; by contrast, accommodation and subsistence that serve a dual personal purpose (sleeping/eating) are not deductible as wholly and exclusively for business. Also, findings of negligence in later returns can justify HMRC making discovery assessments for earlier years.
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 judgment comments (non‑bindingly) that factual distinctions—such as a domiciled single workplace or chambers versus an itinerant/home‑based trader—are critical when applying the "wholly and exclusively" test, and that unusually large or atypical expense claims should prompt HMRC enquiry.
Warning
The chunk is repetitive and contains formatting/textual noise which made extraction of chronological detail and statutory cross‑references difficult. notes are somewhat repetitive and contain formatting/textual noise; some chronological and statutory detail may be incomplete.