Navin Joshi v The Commissioners for HMRC
Decision date: 23 October 2023
Neutral citation: [2023] UKFTT 903 (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 the date from which Mr Joshi's State Pension entitlement commenced after he made late voluntary Class 2 contributions. The Tribunal held it had jurisdiction to hear an appeal against HMRC's discretionary decision under reg 6(1) of the 2001 Regulations, found HMRC correctly treated a voluntary contribution as paid on the actual payment date absent discretion, and upheld HMRC's valid exercise of discretion to backdate the deemed payment/commencement date to 15 May 2017 rather than to the pensionable date of 27 January 2017. The appeal was dismissed subject to amending the Formal Notice to show 15 May 2017 as the deemed date.
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
The Tribunal determined (1) it has jurisdiction to hear appeals against HMRC decisions under the statutory transfer provisions relied on, and (2) under reg 4(7)(b) a voluntary contribution paid before the end of the sixth year is treated as paid on the actual payment date unless reg 6(1) is validly exercised; reg 6(1) permits HMRC to direct an earlier deemed payment date where the contributor shows ignorance or mistake not due to lack of due care, and HMRC's exercise of that discretion will only be disturbed on conventional judicial review grounds.
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 noted as obiter that it should be slow to interfere with an executive discretionary decision under reg 6(1) except on conventional judicial review grounds (illegality, irrationality, procedural impropriety, fettering, proportionality), and that acceptance of a late payment does not automatically permit backdating entitlement to the original pensionable date.