Laser Byte Ltd v The Commissioners for HMRC

Laser Byte Ltd v The Commissioners for HMRC

Mr Puttock was not a fixed rate employee under paragraph 7.6 due to the informal and variable nature of his salary arrangements, and the purported February 2020 pay increase was not effective at that time but was retrospectively reported in March 2020 to increase CJRS claims. The correct reference salary is £550, and the CJRS overpayment assessment should be reduced to £7,427.92.

Parties
Appellant: Laser Byte Ltd; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
15 July 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed subject to reduction of assessment
Legal Topics
Coronavirus Job Retention Scheme, PAYE Reporting, Reference Salary Calculation, Fixed Vs Variable Rate Employee, HMRC Assessment and Clawback
Tax Law Employment Law Coronavirus Job Retention Scheme PAYE Reporting Reference Salary Calculation Fixed Vs Variable Rate Employee HMRC Assessment and Clawback

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Parties

Laser Byte Ltd

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether Mr Puttock was a fixed rate employee under paragraph 7.6 of the First Direction
  2. 2 Whether the purported February 2020 pay increase was effective for CJRS reference salary calculation or was retrospectively reported to increase CJRS claims

Ratio Decidendi

Mr Puttock was not a fixed rate employee under paragraph 7.6 due to the informal and variable nature of his salary arrangements, and the purported February 2020 pay increase was not effective at that time but was retrospectively reported in March 2020 to increase CJRS claims. The correct reference salary is £550, and the CJRS overpayment assessment should be reduced to £7,427.92.

Court Disposition

Appeal dismissed subject to reduction of assessment

Orders

  • Assessment reduced from £8,357.19 to £7,427.92 under section 50(6) TMA 1970
  • Appeal otherwise dismissed