Digital Buying Partners Limited v The Commissioners for HMRC
[2024] UKFTT 399 (TC)
Oral Healthcare Limited v The Commissioners for HMRC
4 April 2023
[2023] UKFTT 357 (TC)
First-tier Tribunal
A dental company claimed government money to pay furloughed workers but missed the deadline to tell the government about some workers. Even though they had problems with their computer system, the court said they still owed the money back, and increased the amount they owed slightly due to some calculation errors.
Key Facts
- •Oral Healthcare Limited appealed a £35,243.67 tax assessment for overclaimed Coronavirus Job Retention Scheme (CJRS) payments.
- •HMRC increased the assessment to £35,739.64 due to calculation errors.
- •The dispute centered on the eligibility of 10 employees whose employment commenced before, but RTI return after, March 19, 2020.
- •HMRC argued these employees were ineligible because their details weren't submitted in the RTI FPS by the relevant cutoff dates (March 19, 2020, or October 31, 2020).
- •The appellant argued that technical difficulties prevented timely RTI submission.
- •The appellant's director, Mr. Patel, admitted difficulties with payroll and using the HMRC PAYE Tool.
Legal Principles
CJRS eligibility for employees required a Full Payment Submission (FPS) in the RTI system by specific dates.
Coronavirus Act 2020 and Functions of HMRC (Coronavirus Job Retention Scheme) Direction of 15 April 2020 (as amended)
Incorrect CJRS claims lead to income tax assessments.
Schedule 16, Finance Act 2020
The Tribunal only has the powers given to it by statute and must apply the law to the facts.
HMRC v Hok Ltd [2012] UKUT 363 (TCC)
Outcomes
Appeal dismissed.
The employees were ineligible because their details were not submitted in the RTI FPS by the mandatory deadlines, regardless of technical difficulties.
Assessment varied to £35,739.64.
HMRC's recalculation, incorporating identified errors, was deemed correct.
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