TC09533 - [2025] UKFTT 00593 (TC)

The relevant legislation is contained in section 84 Value Added Tax Act 1994:

“84 Further provisions relating to appeals.

(1)

References in this section to an appeal are references to an appeal under section 83.

(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

Subject to subsections (3B) and (3C), where the appeal is against a decision with respect to any of the matters mentioned in section 83(1)(b), (n), (p), (q), (ra), (rb) or (zb), it shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.

3A) Subject to subsections (3B) and (3C), where the appeal is against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, it shall not be entertained unless the amount notified by the assessment has been paid or deposited with HMRC.

(3B) In a case where the amount determined to be payable as VAT or the amount notified by the recovery assessment has not been paid or deposited an appeal shall be entertained if—

(a)

HMRC are satisfied (on the application of the appellant), or

(b)

the tribunal decides (HMRC not being so satisfied and on the application of the appellant), that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship.

...”

The principles to be applied in a hardship application are well established, for example in R & C Commrs v Elbrook (Cash & Carry) Ltd [2017] BVC 514 and Totel Ltd v Revenue and Customs Commissioners [2014] UKUT 485 (TCC). The Tribunal must consider the matter on the evidence before it and the burden of proof is on the appellant. The merits of the underlying appeal are not relevant. The fact that HMRC rejected the application because no evidence was produced at that time is also irrelevant.