TC09668 - [2025] UKFTT 01255 (TC)

This was a hearing of an appeal against late submission penalty points and penalties charged under Schedule 24 to the Finance Act 2021 (“FA 21”) in respect of the late submission of Value Added Tax (“VAT”) returns.

FA 21 introduced a new penalty regime which applies to returns and payments due after 1 January 2023. Under section 116 and Schedule 24 a new points system was introduced for penalties for failing to submit returns on time. When five points have been awarded under paragraph 6(1) Schedule 24, a fixed £200 late submission penalty under paragraph 16(1) Schedule 24 is charged for each subsequent failure whilst the maximum penalty points remain in force.

The Tribunal received an appeal from the appellant on 24 February 2025. That appeal was late but HMRC have raised no objection to the late appeal, so it is admitted. The appeal letter did not comply with Rule 20 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (as amended) (“the Rules”) but I waive that requirement and treat it as a valid appeal.

In compliance with Directions issued by the Tribunal, on 17 April 2025, HMRC lodged with the appellant and the Tribunal a Statement of Reasons and bundle of documents.

On 7 July 2025, the appellant lodged a reply thereto (“the Reply”). HMRC then applied to lodge a supplementary response and related bundle and that application was granted on 18 August 2025.

On 1 September 2025, the appellant lodged an application for the scheduled video hearing to be postponed or alternatively for the appeal to be heard on the papers.

On 3 September 2025, HMRC confirmed that they did not object.

On 9 September 2025, Judge Bailey refused the application for postponement and allowed the application for the appeal to be heard on the papers.