Toby Hextall v The Commissioners for HMRC
[2023] UKFTT 390 (TC)
KI v HM Revenue and Customs
23 August 2023
[2023] UKUT 212 (AAC)
Upper Tribunal
Someone appealed because they weren't paid extra money for their child's disability. The judge said they should have told the government about the disability earlier, and that the government isn't required to automatically share information between departments. So, the appeal failed.
Key Facts
- •KI appealed a First-tier Tribunal (F-tT) decision upholding HMRC's refusal to backdate child tax credit disability element beyond 6 April 2016.
- •KI claimed to have notified HMRC of DLA award in 2010 via phone calls, but HMRC denied receiving notification.
- •HMRC amended the award in 2017 after a data-sharing exercise revealed the DLA award.
- •The F-tT initially allowed the appeal but later reversed its decision, disbelieving KI's testimony.
- •KI argued the lack of automatic data sharing between DWP and HMRC constituted an 'official error'.
Legal Principles
Entitlement to tax credit depends on making a claim; awards are limited to one tax year.
Tax Credits Act 2002
HMRC makes initial and final decisions on tax credit awards.
Tax Credits Act 2002
Section 17 declaration constitutes a new claim for the following tax year.
Tax Credits (Claims and Notifications) Regulations 2002
Official error is defined as an error not materially contributed to by the claimant, excluding errors of law.
Tax Credits (Official Error) Regulations 2003
Decisions under section 14 can be revised for official error within five years.
Tax Credits Act 2002 & Tax Credits (Official Error) Regulations 2003
The F-tT may review its decisions upon identifying an error of law.
Tribunals, Courts and Enforcement Act 2007 & Tribunal Procedure (First-tier Tribunal) (Social Entitlement Chamber) Rules 2008
A claimant must notify HMRC of relevant circumstances to increase tax credit.
Tax Credits Act 2002
Outcomes
Appeal dismissed.
The Upper Tribunal found no errors of law in the F-tT's decision. The F-tT's disbelief of KI's testimony was not an error of law; lack of data sharing did not constitute 'official error'; and KI's failure to notify HMRC of the DLA award, even if not explicitly required by section 17 notices, contributed to the underpayment.