Hugh Edward Mark Osmond v The Commissioners for HMRC
[2024] UKFTT 414 (TC)
Andrew Lillicrap v The Commissioners for HMRC
19 January 2023
[2023] UKFTT 72 (TC)
First-tier Tribunal
Someone appealed a tax decision, but their case was paused while another similar case was decided. After the pause, the case was settled. A third person asked to make the decision to un-pause the case public, because it was useful. The judge agreed and said everyone should be able to see it, and also said the tax appeal should continue, because it had been waiting for too long.
Key Facts
- •Mr. Lillicrap appealed HMRC's refusal to repay NICs on a car allowance received from 2010-11 to 2016-17.
- •His appeal was stayed pending the outcome of Laing O'Rourke Services v HMRC.
- •Mr. Lillicrap applied to lift the stay, which was granted by the Tribunal on November 1, 2021 (unpublished decision).
- •The case settled before a hearing, and the appeal was withdrawn on October 14, 2022.
- •Mr. Messore, a third party, applied for the publication of the interlocutory decision lifting the stay.
Legal Principles
Open justice principle – ensuring transparency and public scrutiny of legal proceedings.
Dring v Cape Intermediate Holdings Ltd [2019] UKSC 38 and R (Guardian News and Media Ltd) v City of Westminster Magistrates' Court [2013] QB 618
Once a judgment is handed down to parties, it enters the public domain, regardless of publication on a judicial website.
Moneybrain (Privacy Application) v the Financial Conduct Authority [2022] UKUT 00308 (TCC)
Fairness dictates that HMRC, with access to a complete library of unpublished judgments, should not be allowed to rely on them while taxpayers may, if HMRC has had due notice.
Ardmore Construction Limited v HMRC [2014] UKFTT 0453 (TC) and Greencyc v HMRC [2021] UKFTT 0480 (TC)
NICs are payable on 'earnings,' which implies an overall net financial benefit to the recipient. Reimbursement of expenses is not taxable.
Social Security (Contributions and Benefits) Act 1992, sections 6 and 3; Forde and McHugh v HMRC [2014] UKSC 14; Cheshire Employer and Skills Development Limited v HMRC [2012] EWCA Civ 1429
A tribunal can stay proceedings if a decision in another court would be of material assistance and it's expedient to do so.
RBS Deutschland Holdings GmbH [2007] STC 814
Outcomes
The application for publication of the interlocutory decision was granted.
The principle of open justice outweighs the reason for non-publication (routine matter). Publication ensures fairness and allows both HMRC and taxpayers to refer to the decision.
The stay on Mr. Lillicrap's appeal was lifted.
The decision in Laing O'Rourke would not materially assist, and further delay was deemed inexpedient and contrary to the interests of justice given the age of the claim, the small sum involved, and the disproportionate costs and time already expended.