Bandstream Media and Corporate Communications Limited v The Commissioners for HMRC
Decision date: 22 December 2023
Neutral citation: [2024] UKFTT 49 (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 whether Bandstream could base Coronavirus Job Retention Scheme (CJRS) claims for Mr Smith on a salary increase to £2,500 made after 19 March 2020, rather than on the £600 taxable pay shown on RTI submissions up to that date. The tribunal found the qualifying reference salary is fixed by the RTI return made on or before the CJRS day (19 March 2020), and paragraph 7.12 of the Coronavirus Direction does not permit increasing that reference by after‑the‑event top-ups to claim higher support. The appeal was dismissed and HMRC's Schedule 16 assessments (as adjusted) were upheld.
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’s ratio is that, for CJRS purposes, an employee’s reference salary is determined by the earnings shown on the RTI submission made on or before the relevant CJRS day (here 19 March 2020), and paragraph 7.12 of the Coronavirus Direction only permits a pre‑claim top‑up to correct an original payment that was below 80% of the reference amount, not a retroactive inflation of reference pay to increase entitlement.
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 observes (obiter) that evidence explaining taxpayer behaviour—such as reliance on televised parliamentary exchanges—cannot displace the clear language of the Direction except in exceptional circumstances, and that a purposive reading of the Direction supports a literal approach preventing post‑scheme increases being used to inflate claims.