Stephen Hoey & Ors. v Commissioners for HMRC

Stephen Hoey & Ors. v Commissioners for HMRC

Section 684(7A)(b) ITEPA confers a broad discretionary power on HMRC to relieve payers from PAYE obligations, which can be exercised both prospectively and retrospectively and overlaps with the redirection regulations. The exercise of the 7A power lawfully removed the PAYE credit from the Claimants, who remain liable for the income tax due. The First-tier Tribunal has no jurisdiction to review the exercise of the 7A power or the availability of the PAYE credit; such matters are only challengeable by judicial review. The TOAA provisions do not give rise to a separate charge as the employers' profits were nil after allowable deductions, and the ITEPA charge takes priority. There was no...

Parties
Claimants/appellant: Stephen Hoey & Others; Defendant/respondent: Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
13 May 2022
Procedural Posture
Judicial Review and Statutory Appeal / Court of Appeal (civil Division) Appeal From Upper Tribunal
Outcome
Appeal and cross-appeal dismissed; claim for judicial review dismissed.
Legal Topics
PAYE Regulations, Transfer of Assets Abroad (toaa), Judicial Review, Statutory Interpretation, Employment Income Taxation
Tax Law Administrative Law PAYE Regulations Transfer of Assets Abroad (toaa) Judicial Review Statutory Interpretation Employment Income Taxation

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Parties

Stephen Hoey & Others

Claimants/appellant

Commissioners for Her Majesty's Revenue & Customs

Defendant/respondent

Procedural Posture

Judicial Review and Statutory Appeal / Court of Appeal (civil Division) Appeal From Upper Tribunal

Legal Issues

  1. 1 Proper construction and scope of section 684(7A)(b) ITEPA (the '7A power') and its effect on PAYE credit
  2. 2 Lawfulness of HMRC's exercise of the 7A power
  3. 3 Jurisdiction of the First-tier Tribunal to review the exercise of the 7A power

Ratio Decidendi

Section 684(7A)(b) ITEPA confers a broad discretionary power on HMRC to relieve payers from PAYE obligations, which can be exercised both prospectively and retrospectively and overlaps with the redirection regulations. The exercise of the 7A power lawfully removed the PAYE credit from the Claimants, who remain liable for the income tax due. The First-tier Tribunal has no jurisdiction to review the exercise of the 7A power or the availability of the PAYE credit; such matters are only challengeable by judicial review. The TOAA provisions do not give rise to a separate charge as the employers' profits were nil after allowable deductions, and the ITEPA charge takes priority. There was no...

Court Disposition

Appeal and cross-appeal dismissed; claim for judicial review dismissed.

Orders

  • The claim for judicial review is dismissed.
  • The appeal and cross-appeal are dismissed.