DP Langan Ltd v Revenue and Customs (INCOME TAX - Coronavirus job retention scheme) [2025] UKFTT 958 (TC) (07 August 2025)

DP Langan Ltd v Revenue and Customs (INCOME TAX - Coronavirus job retention scheme) [2025] UKFTT 958 (TC) (07 August 2025)

The CJRS Direction requires reference salary for fixed rate employees to be determined by the amount paid in the last salary period before 19 March 2020. Paragraph 7.12 does not permit increasing the reference salary by post-19 March pay rises; it only allows correction of underpayments to meet the 80% threshold. The appellant's claims based on increased salaries were excessive and not permitted under the scheme. HMRC's assessments, as amended, were valid.

Citation
[2025] UKFTT 958 (TC)
Parties
Appellant: DP Langan Limited; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 August 2025
Procedural Posture
Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Final Judgment After Remote Video Hearing
Outcome
Appeal dismissed
Legal Topics
Coronavirus Job Retention Scheme (cjrs), Income Tax Assessments, Statutory Interpretation, Reference Salary, Furlough Scheme, PAYE, HMRC Compliance
Tax Law Public Law Coronavirus Job Retention Scheme (cjrs) Income Tax Assessments Statutory Interpretation Reference Salary Furlough Scheme PAYE +1 more

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Parties

DP Langan Limited

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Final Judgment After Remote Video Hearing

Legal Issues

  1. 1 Whether DP Langan Limited was entitled to claim CJRS grants based on increased salaries after 19 March 2020
  2. 2 Whether paragraph 7.12 of the CJRS Direction allows for 'topping up' reference salary for CJRS claims
  3. 3 Whether HMRC's income tax assessments for overclaimed CJRS amounts were valid

Ratio Decidendi

The CJRS Direction requires reference salary for fixed rate employees to be determined by the amount paid in the last salary period before 19 March 2020. Paragraph 7.12 does not permit increasing the reference salary by post-19 March pay rises; it only allows correction of underpayments to meet the 80% threshold. The appellant's claims based on increased salaries were excessive and not permitted under the scheme. HMRC's assessments, as amended, were valid.

Court Disposition

Appeal dismissed

Orders

  • Taxpayer's appeal against the assessments, as amended on review, is dismissed.
  • Assessments increased in accordance with HMRC's review conclusion letter.