Complete Solutions Europe Ltd v Revenue and Customs (Income Tax - Coronavirus Job Retention Scheme - fixed rate or non fixed rate employees - reference salary) [2025] UKFTT 1116 (TC) (19 September 2025)

Complete Solutions Europe Ltd v Revenue and Customs (Income Tax - Coronavirus Job Retention Scheme - fixed rate or non fixed rate employees - reference salary) [2025] UKFTT 1116 (TC) (19 September 2025)

The spa engineers were not fixed rate employees under the CJRS Direction; reference salary for CJRS claims must be calculated using the averaging method including all pay in respect of the period up to the day before furlough, even if paid after that date; HMRC's assessments must be reduced accordingly.

Citation
[2025] UKFTT 1116 (TC)
Parties
Appellant: Complete Solutions Europe Limited; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
19 September 2025
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part; assessments reduced and remitted for recalculation.
Legal Topics
Coronavirus Job Retention Scheme, Income Tax Assessments, Reference Salary Calculation, Furlough Scheme, Statutory Interpretation
Tax Law Employment Law Administrative Law Coronavirus Job Retention Scheme Income Tax Assessments Reference Salary Calculation Furlough Scheme Statutory Interpretation

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Parties

Complete Solutions Europe Limited

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether spa engineers were fixed rate or variable rate employees under the CJRS Direction
  2. 2 How reference salary should be calculated for CJRS claims for non-fixed rate employees
  3. 3 Whether HMRC's assessments and calculation methods were correct

Ratio Decidendi

The spa engineers were not fixed rate employees under the CJRS Direction; reference salary for CJRS claims must be calculated using the averaging method including all pay in respect of the period up to the day before furlough, even if paid after that date; HMRC's assessments must be reduced accordingly.

Court Disposition

Appeal allowed in part; assessments reduced and remitted for recalculation.

Orders

  • Assessments 2 and 3 reduced to nil.
  • Assessments 1 and 4 upheld in principle but to be reduced based on correct averaging method including pay for period up to 22 March 2020.