TC09671 - [2025] UKFTT 01261 (TC)

On 22 July 2016 HMRC opened an enquiry, under s 9A TMA, into the 2014-15 self-assessment tax returns of Mr Hamasala, who operated a car wash business. HMRC requested further information in a letter of 17 January 2017 to Mr Hamasala’s accountant. In the absence of a response, on 20 February 2017 an Information Notice was issued by HMRC to Mr Hamasala and his accountant. This required the production of that information. By letter to his accountant, dated 8 March 2017 HMRC warned that consideration was being given to issuing Mr Hamasala with penalties for inaccuracies in the 2014-15 tax return.

On 5 June 2017 HMRC issued a closure notice amending Mr Hamasala’s 2014-15 self-assessment tax return in addition to discovery assessments for 2012-13, 2013-14 and 2015-16. Mr Hamasala appealed to HMRC against the closure notice and discovery assessments on 21 June 2017 requesting a review of the calculations. On 17 August 2017 HMRC issued a ‘view of the matter’ letter responding to Mr Hamasala’s appeal which confirmed the closure notice and assessments. That letter explained that if Mr Hamasala did not agree with HMRC’s view he could either ask for the decision to be reviewed or notify his appeal to the Tribunal and clearly stated, under the sub-heading “Appeal to tribunal” (with emphasis as in the letter):

“If you want to notify your appeal to the tribunal you must send your appeal to the Tribunals Service within 30 days of the date of this letter.”

Although late filing penalties had been issued by HMRC as early as 18 February 2015 (as can be seen from the schedule in the Appendix) Mr Hamasala had not appealed against these until his accountant sent a letter, dated 17 July 2019, to HMRC appealing against the penalties. HMRC rejected the appeals by letter of 6 September 2017 as the deadline for “appealing against the penalties has passed.”

On 1 May 2019 HMRC wrote to Mr Hamasala’s accountant, in response to a letter from him requesting the late appeal against the penalties be accepted, stating that the appeal could not be accepted as it was “too late”. The letter explained that:

“… If you do not agree that you made your appeal too late for us to consider, you can ask HM Courts & Tribunals Service to review our decision. You should write to them by 31 May 2020. They will arrange for an independent tribunal to consider your appeal.

For more information about sending your appeal to HM Courts & Tribunals Service and for the appeal form, go to www.gov.uk/courts-tribunals/first-tier-tribunal-tax or phone them on 0300 123 1024.”

Mr Hamasala appealed to the Tribunal against both the closure notice and assessments and the penalties on 2 June 2024. The reason given on his notice of appeal for the appeals being late was that he did not know about the Tribunal until:

“… a few days ago. HMRC told me I did not know”

At the hearing Mr Hamasala explained that although he had been in the Republic of Ireland between November 2015 and November 2018 he had been in touch with his accountant in the UK throughout this period and was aware of HMRC’s letters. Mr Hamasala also said that he had relied on his accountant who, when asked about the position with HMRC, had always assured him that everything was “in hand” and being “dealt with”.