Vision HR Solutions Limited, R (on the application of) v The Commissioners for HMRC

3 July 2023

[2023] EWHC 1659 (Admin)

High Court

Two companies were accused by HMRC of helping people avoid taxes. They sued HMRC, but the judge said HMRC was right and the companies hadn't shown good reason to challenge the decision. The companies hadn't even explained their own scheme properly.

Key Facts

•Vision HR Solutions Limited and Veqta Limited (Claimants) provide staffing services.
•HMRC (Defendant) listed the Claimants under Section 86 of the Finance Act 2022 for promoting suspected tax avoidance schemes.
•The Claimants challenged the decision via judicial review, arguing breaches of EU law, data protection, and human rights.
•The Claimants' scheme involved separating remuneration into salary (tax deducted) and 'option payments' (no tax deducted), allegedly creating an artificial tax advantage.
•The Claimants failed to adequately explain their scheme's details to the court.
•HMRC's decision included publishing the Claimants' names, addresses, and scheme details online to warn potential users of the tax risks.

Legal Principles

Free Movement of Capital (FMOC)

Article 63 TFEU (previously applicable EU law)

Right to Establishment

Article 25 of the Withdrawal Agreement, Article 49 TFEU (previously applicable EU law)

Data Protection

EU GDPR and UK GDPR (withdrawn ground)

Human Rights Act 1998

Article 1 of Protocol 1, Article 6 ECHR

Section 86 of the Finance Act 2022

Finance Act 2022

Duty of Candour

Judicial Review principles

Implied Repeal

Statutory Interpretation

Proportionality

Administrative Law principles

Vienna Convention on the Law of Treaties

International Law

Outcomes

Permission for judicial review refused.

None of the grounds had an arguable prospect of success; Claimants failed to meet duty of candour.

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