Philip E Edgar v Commissioners for Her Majesty's Revenue and Customs
Decision date: 13 April 2011
Neutral citation: [2011] UKFTT 245 (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
Mr Edgar appealed HMRC's disallowance of pre-employment costs incurred to convert a South African commercial pilot licence to a UK/JAA standard and related travel before starting UK employment. The Tribunal held that most disputed items were training, personal or pre-employment travel costs and did not qualify as deductible "professional fees" under s343 ITEPA 2003, and that expenses incurred before commencing employment are not deductible under s336 or s337; the appeal was refused. HMRC's allowed flat-rate and headset concessions were upheld.
Ratio decidendi
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AI confidence in this ratio decidendi summary: high
A deduction as a "professional fee" under s343 requires the expense to be a fee payable on the issue or renewal of a CAA licence (or a closely analogous registration/certification/licensing matter); general training, equipment or personal items do not qualify. Expenses incurred prior to commencing employment are not "incurred...in the performance of the duties of the employment" for s336 and so are generally not deductible under the general rule or s337 absent a specific statutory exception.
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 the words "or other matter" in s343(1)(b) should be read ejusdem generis with "registration, certification, licensing" and therefore do not extend to training costs. It also noted that payments need not be made directly to the CAA to qualify, but must nevertheless be payments "on the issue or renewal of a licence."