Claimant v HM Revenue & Customs

Outcome

Facts

Intellidigest, represented by its CEO Dr Kanu, appealed against a notice of underpayment and financial penalty of £4,955.76 issued under the National Minimum Wage Act 1998 on 31 March 2025 (revised 4 June 2025). The appellant argued there should be discretion not to impose a penalty based on mitigating circumstances including a bereavement affecting Dr Kanu, that they had tried to comply, that schemes had ended making recovery difficult, and principles of proportionality. HMRC applied to strike out the appeal on the basis it had no reasonable prospect of success.

Decision

The tribunal struck out the appeal under Rule 38(1)(a) as having no reasonable prospect of success. The judge found that the appellant had not established any valid ground of appeal under section 19C of the National Minimum Wage Act 1998, either that circumstances specified in Secretary of State directions applied or that the penalty was incorrectly calculated. The tribunal's jurisdiction was limited to the statutory grounds and the appellant's arguments about discretion, mitigation and proportionality were not relevant to the determination of such an appeal.

Practical note

Legal authorities cited