Cafe Jinnah LLP v Revenue and Customs (INCOME TAX - Eat Out to Help Out Scheme) [2024] UKFTT 159 (TC) (26 February 2024)

Cafe Jinnah LLP v Revenue and Customs (INCOME TAX - Eat Out to Help Out Scheme) [2024] UKFTT 159 (TC) (26 February 2024)

The Tribunal found that while the HMRC officer subjectively believed the appellant had overclaimed, this belief was not objectively reasonable given the evidence available, including daily takings records, sample bills, corroborating financial documents, and the absence of any allegation of fraud. The appellant had...

Source-derived case information.

Citation
[2024] UKFTT 159
Parties
Appellant: Café Jinnah LLP; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
26 February 2024
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal allowed
Legal Topics
Eat Out to Help Out Scheme, Income Tax Assessments, Burden of Proof, Evidentiary Standards, Coronavirus Support Payments
Tax Law Administrative Law Eat Out to Help Out Scheme Income Tax Assessments Burden of Proof Evidentiary Standards Coronavirus Support Payments

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Parties

Café Jinnah LLP

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether HMRC's assessment to claw back Eat Out to Help Out Scheme payments was valid and reasonable
  2. 2 Whether the appellant substantiated its claim for support payments under the scheme

Ratio Decidendi

The Tribunal found that while the HMRC officer subjectively believed the appellant had overclaimed, this belief was not objectively reasonable given the evidence available, including daily takings records, sample bills, corroborating financial documents, and the absence of any allegation of fraud. The appellant had provided sufficient evidence to substantiate its claim for support payments under the scheme. The assessment was therefore not objectively reasonable and the appeal was allowed.

Court Disposition

Appeal allowed

Orders

  • The assessment by HMRC is set aside.
  • The appellant's claim for support payments under the Eat Out to Help Out Scheme is upheld in full.