Storey v Revenue and Customs (Expenses incurred in performance of employment duties) [2021] UKFTT 109 (TC) (5 April 2021)

Storey v Revenue and Customs (Expenses incurred in performance of employment duties) [2021] UKFTT 109 (TC) (5 April 2021)

Appellant failed to provide sufficient evidence to establish that claimed mileage and other expenses were incurred in the performance of employment duties. Discrepancies in records and lack of corroboration rendered claims unreliable. Schedule 24 penalty for carelessness is suspended due to absence of clear guidance from HMRC.

Citation
[2021] UKFTT 109
Parties
Appellant: Derek Storey; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
05 April 2021
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed in respect of claimed expenses; Schedule 24 penalty suspended subject to settlement of tax liability.
Legal Topics
Employment Expenses, Self Assessment, Schedule 24 Penalties, Allowable Deductions
Tax Law Employment Expenses Self Assessment Schedule 24 Penalties Allowable Deductions

Case Brief

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Parties

Derek Storey

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether mileage expenses were incurred in the performance of employment duties
  2. 2 Whether mileage expenses meet Section 231 conditions for deduction
  3. 3 Whether subsistence, tools, associated costs, and accountancy fees were incurred wholly, exclusively and necessarily in the performance of employment duties

Ratio Decidendi

Appellant failed to provide sufficient evidence to establish that claimed mileage and other expenses were incurred in the performance of employment duties. Discrepancies in records and lack of corroboration rendered claims unreliable. Schedule 24 penalty for carelessness is suspended due to absence of clear guidance from HMRC.

Court Disposition

Appeal dismissed in respect of claimed expenses; Schedule 24 penalty suspended subject to settlement of tax liability.

Orders

  • Appellant's claims for employment expenses are disallowed.
  • Schedule 24 penalty of £2,339.63 is suspended pending settlement of remaining tax liability.