Febrey v Revenue & Customs (INCOME TAX/CORPORATION TAX : Other) [2018] UKFTT 764 (TC) (20 December 2018)

Febrey v Revenue & Customs (INCOME TAX/CORPORATION TAX : Other) [2018] UKFTT 764 (TC) (20 December 2018)

Appellant had no employment income from the Company for 2005/2006 and 2006/2007; for 2007/2008, appellant received employment income less than £300,000, but failure to deduct PAYE and NICs was not wilful and appellant had no knowledge of the failure; Discovery Assessments and Directions do not apply for 2005/2006 and 2006/2007; Directions do not apply for 2007/2008.

Citation
[2018] UKFTT 764
Parties
Appellant: Michael John Febrey; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
20 December 2018
Procedural Posture
Income Tax/national Insurance Contributions Appeal / First Tier Tribunal Rehearing Following Upper Tribunal Remittal
Outcome
Appeal allowed
Legal Topics
Discovery Assessments, PAYE Liability, National Insurance Contributions, Employment Income, Director's Loan Account, Dividend Payments
Tax Law Discovery Assessments PAYE Liability National Insurance Contributions Employment Income Director's Loan Account Dividend Payments

Case Brief

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Parties

Michael John Febrey

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/national Insurance Contributions Appeal / First Tier Tribunal Rehearing Following Upper Tribunal Remittal

Legal Issues

  1. 1 Validity and timeliness of discovery assessments for 2005/2006 and 2006/2007
  2. 2 Whether appellant received employment income in 2005/2006 and 2006/2007
  3. 3 Whether PAYE and NICs liability can be transferred to appellant under Directions

Ratio Decidendi

Appellant had no employment income from the Company for 2005/2006 and 2006/2007; for 2007/2008, appellant received employment income less than £300,000, but failure to deduct PAYE and NICs was not wilful and appellant had no knowledge of the failure; Discovery Assessments and Directions do not apply for 2005/2006 and 2006/2007; Directions do not apply for 2007/2008.

Court Disposition

Appeal allowed

Orders

  • Discovery Assessments for 2005/2006 and 2006/2007 set aside
  • Directions transferring PAYE and NICs liability to appellant do not apply