TC09517 - [2025] UKFTT 00527 (TC)

I was provided with a substantial bundle of documents. The appellant’s husband who was present in the room along with her representative, Mr Salam, made some muttered off-camera comments which I have largely ignored save to the extent that they were reiterated to me, by Mr Salam by way of additional submissions. From this evidence I make the following findings:

HMRC opened an enquiry into the appellant’s tax returns on 14 October 2014 and subsequently sought further information regarding those returns from the appellant.

In her letter of 25 November 2016 sent to the appellant, Officer Hutchings explained that in the absence of the requested information, she proposed to progress the enquiry by making amendments to the appellant’s 2011/2012 and 2012/2013 tax returns by assessing unidentified credits in the appellant’s bank accounts as being additional business income.

The closure notices were issued on 9 August 2017 by Officer Hutchings who had opened an enquiry into the appellant’s tax returns for the two years in question. She concluded that there were unidentified credits in the appellant’s bank statements which should be treated as undeclared business income.

A late appeal was made by the appellant’s agent on 22 September 2017, which was accepted, in a letter dated 17 October 2017 by Officer Hutchings, as a late appeal. She asked for the appellant to provide information which, on 9 November 2017, was sent by the appellant’s agent to Officer Hutchings. That information included bank statements and a schedule of transactions relating to a Standard Chartered bank account held by the appellant’s husband.

Between January 2018 and December 2018 Officer Hutchings and the appellant’s agent exchanged emails and information. However, in Officer Hutchings’ view, this information was insufficient to displace the conclusion that she had come to in the closure notices.

On 9 April 2019, Officer Hutchings issued her view of the matter letter to both the appellant and her agent (“the view of the matter letter”). That letter explained that the appeals had remained open for the appellant and her agent to provide information and documentation to settle the appeals. Her view was as stated in her letter dated 25 November 2016 and told the recipients that if they did not agree with her view, they could either ask to have the decision reviewed or they should notify an appeal to an independent tribunal, but in both cases that must be done within 30 days of the date of “this letter”. It went on to say that the deadline was 9 May 2019 written in size 16 font.

In the absence of any reply to this letter, on 14 June 2019, Officer Hutchings issued a letter to the appellant advising her that the appeals would now be considered settled by agreement under section 54(1) TMA 1970. A copy of this letter was sent to the agent.

Letters sent by Officer Hutchings to the appellant were sent to the address which was on HMRC’s records as being her correspondence address.

On 17 June 2019, in a letter from the agent to Officer Hutchings, the agent advised that he had not received the view of the matter letter and asked for a reconsideration of the evidence previously provided.

Subsequent correspondence then took place between Officer Hutchings, and the appellant’s agent, in which the agent indicated on a number of occasions that he had not received copies of letters which Officer Hutchings had purportedly sent him.

In an email dated 13 February 2020 from Officer Hutchings to the agent, Officer Hutchings attached a copy of her letter dated 17 June 2019 and a copy of the covering letter sent by her to the agent with a copy of the view of the matter letter which she had sent to the agent on 9 April 2019. The agent responded to this email on 11 October 2021 requesting a further copy of the view of the matter letter.

On 18 February 2020 the appellant telephoned HMRC who, having been told that the liability was approximately £34,000, wanted to know where it was coming from.

On 9 November 2021, Officer Hutchings wrote to the appellant enclosing copies of: her letter dated 25 November 2016; the view of the matter letter; her appeal settlement letter dated 14 June 2019; her letter to the agent dated 27 June 2019; and a letter to the agent dated 9 November 2021.

On the same date, Officer Hutchings wrote to the agent enclosing copies of the same correspondence, including her letter to the appellant of even date.

In her letter to the agent, Officer Hutchings said that “As there [has] been a lapse in correspondence via email, I am required to obtain your client’s written authority that we may continue to correspond via email”.

In a letter dated 16 November 2021 to Officer Hutchings, the appellant stated that she “gives full permission to AS Associates to communicate with HMRC regarding my case and other tax affairs via email”.

On 11 July 2023, the agent telephoned HMRC to indicate disagreement with the payment that the appellant had been asked to pay.

On 26 February 2024, the agent, on behalf of the appellant, notified her appeal to the tribunal and requested permission to make a late appeal.