Sinter Site Services Limited v The Commissioners for HMRC
Decision date: 31 October 2024
Neutral citation: [2024] UKFTT 995 (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
Sinter Site Services Ltd appealed HMRC assessments seeking recovery of alleged overclaimed CJRS payments. The tribunal found the employees were variable-rate workers and that reference salary must be calculated under Paragraph 7.2 using amounts actually paid in the reference periods; agreed but unpaid future wage increases could not be relied on. HMRC's assessments for £87,958.82 were upheld and the appeal dismissed.
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
For variable-rate employees, the reference salary for CJRS entitlement is determined under Paragraph 7.2 by reference to amounts actually paid in the relevant prior periods; prospective or agreed-but-unpaid wage increases are excluded. The tribunal treated the statutory paragraphs (7.1–7.15) as prescribing the sole method for calculating reference salary, leaving no room for alternative "reasonable" calculations based on intended future pay.
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 expressed sympathy for the appellant's genuine belief that the increased wages might be used and noted HMRC did not pursue penalties; it also commented that the scheme's reliance on historical actual pay is commercially justifiable given its public-finance purpose.