Digital Buying Partners Limited vs HMRC – Upper Tribunal – [2024] UKUT 437 (TCC) – Case Summary

Upper Tribunal Denies Appeal in CJRS Eligibility Case

The Upper Tribunal (Tax and Chancery Chamber) recently delivered a decision refusing Digital Buying Partners Limited (DBP) permission to appeal a decision by the First-tier Tribunal (FTT) regarding eligibility for the Coronavirus Job Retention Scheme (CJRS) payments.

DBP had initially applied to the FTT for permission to appeal on five grounds, all of which were denied. The application was subsequently renewed before the Upper Tribunal, focusing on alleged errors in statutory interpretation and inconsistent application of the CJRS rules by HMRC.

The case centred on whether two employees of DBP were eligible for CJRS payments, given that they were not included in a Real Time Information (RTI) return submitted to HMRC by the critical date of 19 March 2020. DBP argued that HMRC had exercised discretion in similar cases, allowing claims despite missing the deadline.

Judge Jeanette Zaman, presiding over the case, reiterated that appeals to the Upper Tribunal must demonstrate an arguable point of law. The Tribunal found no such arguable error, upholding the FTT's decision that the CJRS rules did not allow for discretion where the RTI deadline was missed.

DBP presented new evidence, including correspondence indicating HMRC's discretionary actions in other cases. However, the Tribunal concluded that this evidence was not sufficient to establish an arguable error of law, particularly as the statutory provisions governing CJRS eligibility were clear and did not permit discretion.

The Tribunal also addressed DBP's request for a stay on penalties and interest charges assessed by HMRC, stating that it lacked jurisdiction to grant such a stay as these issues were not part of the original appeal.

Additionally, DBP's application for a protective costs order was dismissed, given the refusal of permission to appeal. The Tribunal emphasised the importance of adhering to statutory deadlines and the limited scope for public law arguments in tax appeals.

This decision underscores the stringent application of statutory rules in tax cases and highlights the challenges faced by taxpayers in seeking to appeal based on discretionary treatment by HMRC.

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For more information on public law principles in tax cases, see BeCivil's guide to UK Tax Law.