Laser Byte Ltd v Revenue and Customs (Coronavirus Job Retention Scheme - clawback of payments) [2024] UKFTT 616 (TC) (09 July 2024)

Laser Byte Ltd v Revenue and Customs (Coronavirus Job Retention Scheme - clawback of payments) [2024] UKFTT 616 (TC) (09 July 2024)

Mr Puttock was not a fixed rate employee under the CJRS rules due to the informal and variable nature of his pay arrangements, and the purported February 2020 pay increase was not effective at that time but was retrospectively reported in March 2020 to increase CJRS entitlement. Therefore, the higher salary should not be included in the reference salary calculation.

Citation
[2024] UKFTT 616
Parties
Appellant: Laser Byte Ltd; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 July 2024
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed subject to reduction of assessment
Legal Topics
Coronavirus Job Retention Scheme, PAYE Reporting, Income Tax Assessment, Employment Status, Reference Salary Calculation, HMRC Clawback
Tax Law Employment Law Public Law Coronavirus Job Retention Scheme PAYE Reporting Income Tax Assessment Employment Status Reference Salary Calculation +1 more

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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 (tax Chamber) Decision

Legal Issues

  1. 1 Whether Mr Puttock was a fixed rate employee for CJRS purposes
  2. 2 Whether the purported February 2020 pay increase should be included in the reference salary for CJRS claims

Ratio Decidendi

Mr Puttock was not a fixed rate employee under the CJRS rules due to the informal and variable nature of his pay arrangements, and the purported February 2020 pay increase was not effective at that time but was retrospectively reported in March 2020 to increase CJRS entitlement. Therefore, the higher salary should not be included in the reference salary calculation.

Court Disposition

Appeal dismissed subject to reduction of assessment

Orders

  • The assessment is reduced from £8,357.19 to £7,427.92 under section 50(6) TMA 1970.