HM Revenue & Customs v Benchdollar Ltd & Ors

HM Revenue & Customs v Benchdollar Ltd & Ors

Employers are estopped by convention from asserting that NIC claims are statute barred where the primary limitation period expired on or before 11th September 2001, due to the Revenue's detrimental reliance on the shared (albeit mistaken) assumption that acknowledgements or part payments postponed limitation. For claims where the limitation period expired after that date, no estoppel arises, as the Revenue knew the true legal position and could have protected its claims by other means. No contract arose from the exchanges, and all defences of want of authority failed on the facts.

Parties
Claimant: Commissioners for Her Majesty’s Revenue and Customs; Defendants: Benchdollar Limited and Others
Jurisdiction
England and Wales
Judgment Date
11 June 2009
Procedural Posture
Civil / Judgment After Simultaneous Trial of 14 Claims, Determination of Preliminary Issues
Outcome
Declaratory judgment on preliminary issues; not a final determination of liability or quantum.
Legal Topics
Limitation of Actions, Estoppel by Convention, National Insurance Contributions, Acknowledgement of Debt, Authority of Agents
Civil Procedure Employment Law Tax Law Limitation of Actions Estoppel by Convention National Insurance Contributions Acknowledgement of Debt Authority of Agents

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Parties

Commissioners for Her Majesty’s Revenue and Customs

Claimant

Benchdollar Limited and Others

Defendants

Procedural Posture

Civil / Judgment After Simultaneous Trial of 14 Claims, Determination of Preliminary Issues

Legal Issues

  1. 1 Whether written acknowledgements or part payments by employers, expressly denying liability, postponed the running of time under section 29(5) of the Limitation Act 1980 for NIC claims
  2. 2 Whether the exchanges between the Revenue and employers gave rise to a contract or estoppel by convention preventing reliance on the limitation defence
  3. 3 Whether agents (DPC) had authority to make acknowledgements or part payments on behalf of certain defendants

Ratio Decidendi

Employers are estopped by convention from asserting that NIC claims are statute barred where the primary limitation period expired on or before 11th September 2001, due to the Revenue's detrimental reliance on the shared (albeit mistaken) assumption that acknowledgements or part payments postponed limitation. For claims where the limitation period expired after that date, no estoppel arises, as the Revenue knew the true legal position and could have protected its claims by other means. No contract arose from the exchanges, and all defences of want of authority failed on the facts.

Court Disposition

Declaratory judgment on preliminary issues; not a final determination of liability or quantum.

Orders

  • Employers are estopped by convention from asserting limitation for NIC claims where the limitation period expired on or before 11th September 2001.
  • Employers are not estopped from relying on limitation for claims where the limitation period expired after 11th September 2001.