Williams v Revenue & Customs [2012] UKFTT 378 (TC) (31 May 2012)

Williams v Revenue & Customs [2012] UKFTT 378 (TC) (31 May 2012)

For the first 16 months of employment, Mr Williams' expectation was that his work at Heathrow was temporary and would be followed by a move to King's Cross; thus, Heathrow was not a permanent workplace during that period and travel expenses were deductible. After 16 months, when it became reasonable to expect that his period of continuous work at Heathrow would exceed 24 months, Heathrow became a permanent workplace and deductions were no longer available. Discovery assessments for 2003-2004 were valid as HMRC could not have been aware of excessive relief from the information provided.

Citation
[2012] UKFTT 378 (TC)
Parties
Appellant: Michael Williams; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
31 May 2012
Procedural Posture
Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Final Judgment After Rehearing
Outcome
Appeal allowed in part, dismissed in part.
Legal Topics
Employment Income, Travel Expenses, Deductibility, Ordinary Commuting, Permanent Workplace, Temporary Workplace, Discovery Assessments
Tax Law Employment Income Travel Expenses Deductibility Ordinary Commuting Permanent Workplace Temporary Workplace Discovery Assessments

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Parties

Michael Williams

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Final Judgment After Rehearing

Legal Issues

  1. 1 Whether Mr Williams is entitled to deductions for travel and subsistence expenses under ITEPA 2003 for the relevant tax years
  2. 2 Whether HMRC was entitled to make discovery assessments for the years 2002-2003 and 2003-2004

Ratio Decidendi

For the first 16 months of employment, Mr Williams' expectation was that his work at Heathrow was temporary and would be followed by a move to King's Cross; thus, Heathrow was not a permanent workplace during that period and travel expenses were deductible. After 16 months, when it became reasonable to expect that his period of continuous work at Heathrow would exceed 24 months, Heathrow became a permanent workplace and deductions were no longer available. Discovery assessments for 2003-2004 were valid as HMRC could not have been aware of excessive relief from the information provided.

Court Disposition

Appeal allowed in part, dismissed in part.

Orders

  • 2002-2003 assessment discharged.
  • 2003-2004 assessment discharged in part (for travel and subsistence expenses incurred from 6 April 2003 to January 2004); otherwise confirmed.