TC09622 - [2025] UKFTT 01232 (TC)

HMRC first contacted Mr Ahya on 26 September 2022, advising that they believed he may have received rental income which had not been declared to HMRC. Mr Ahya did not respond and a formal information notice was issued on 21 November 2022 under Schedule 36 Finance Act (FA) 2008. Mr Ahya then requested and was granted several extensions of time to comply, the last of which was on 21 February 2023. None of the information requested in the notice was received; after the last extension was granted Mr Ahya did not communicate with HMRC again until he wrote to appeal against the assessments and penalties.

On 17 May 2023, HMRC issued a penalty notice for failure to comply with the information notice. Subsequently, on 2 November 2023, HMRC wrote to Mr Ahya enclosing calculations of the tax they believed to be due for the tax years 2004/05 to 2021/22. Mr Ahya did not respond to this letter.

On 15 January 2024, HMRC issued formal assessments under section 29 of the Taxes Management Act 1970 totalling £57,762.40, and penalties under section 7(8) of the same Act totalling £5,199.24. On 18 January 2024, further penalties were issued under Schedule 41 to the Finance Act 2008 in the sum of £12,129.48.

Mr Ahya submitted a letter dated 8 March 2024, received by HMRC on 12 March 2024, which was treated as a late appeal against the assessments and penalties although it did not specifically appeal the assessments, only the penalties. HMRC rejected the appeal by letter dated 23 July 2024, on the basis that no reasonable excuse for the delay had been provided. Following further correspondence, HMRC reiterated its refusal on 13 September 2024 and advised Mr Ahya to apply to the Tribunal for permission to appeal out of time.

On 4 November 2024, Mr Ahya’s agent requested reconsideration of HMRC’s decision. HMRC responded on 18 November 2024, maintaining its refusal and providing guidance on how to apply to the Tribunal. Mr Ahya’s application to the Tribunal was submitted on 18 December 2024.