Smart H&S Ltd v The Commissioners for HMRC
Decision date: 14 August 2025
Neutral citation: [2025] UKFTT 1070 (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
Smart H&S Ltd appealed an HMRC assessment alleging overclaimed CJRS grants for its two director‑employees. The Tribunal found the correct reference salary for CJRS was the pay reported to HMRC by the relevant reference date (RTI/19 March 2020, circa £719), not later increased salaries, and dismissed Smart's appeal. The decision records a 56‑day right to seek permission to appeal.
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 held that, for employees employed on 19 March 2020, the reference salary for calculating CJRS payments is fixed by the pay reported to HMRC up to that reference date (as shown on RTI), and employers cannot retrospectively inflate salaries after that date to increase CJRS claims.
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 referred to the Upper Tribunal's reasoning in Bandstream to underscore that the scheme was not intended to underwrite post‑introduction wage inflation, and remarked that Parliamentary debate should not alter a clear statutory text. These comments were ancillary to the decision.
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