Thomas Merlin Ash v The Commissioners for HMRC
[2023] UKFTT 272 (TC)
Shane Ellis v The Commissioners for HMRC
26 February 2024
[2024] UKFTT 161 (TC)
First-tier Tribunal
Someone wrongly claimed government money meant for self-employed people during the pandemic. The tax authorities asked for the money back. A court decided the tax authorities were right to ask for the money back and that the court couldn't consider arguments about whether it was fair.
Key Facts
- •Mr. Shane Ellis (Appellant) appealed an HMRC assessment for £14,070 in relation to incorrectly claimed Self-Employed Income Support Scheme (SEISS) payments during the COVID-19 pandemic.
- •The Appellant was a Snap-on Tools franchisee who incorporated Ellis SAJ Limited in 2018.
- •The Appellant ceased trading as a sole trader in 2018 but received SEISS payments in 2020.
- •The Appellant made voluntary disclosures to HMRC admitting the error.
- •HMRC issued an assessment to recover the incorrectly claimed SEISS payments.
- •The Appellant's appeal challenged the validity of the assessment and raised arguments of fairness and legitimate expectation.
Legal Principles
Validity of HMRC assessment under Schedule 16, Finance Act 2020.
Finance Act 2020, Schedule 16, paragraphs 8 and 9
Jurisdiction of the First-Tier Tribunal (Tax Chamber) to consider public law arguments regarding fairness and legitimate expectation.
Birkett v HMRC [2017] UKUT 89 (TCC), Taxes Management Act 1970, section 50
Outcomes
Appeal dismissed; HMRC assessment upheld.
The Tribunal found the assessment validly raised under Schedule 16 of the Finance Act 2020. It lacked jurisdiction to consider public law arguments of fairness and legitimate expectation based on the statutory powers outlined in section 50 of the Taxes Management Act 1970 and precedent set in Birkett v HMRC.