TC09642 - [2025] UKFTT 01116 (TC)

It is helpful first to set out HMRC’s position with regards to the four different assessments and which we are expecting to consider.

With regards to Assessment 1, HMRC acknowledge that they did not have the power to cancel the assessment (as they had purported to do) and that it therefore remains live and is subject to appeal.

HMRC invite the Tribunal to vary the assessment from its original amount £70,119.60 down to £44,310.36 (which is the amount calculated by the review officer). This assessment covers the accounting period ended 28 October 2020 in tax year ending 5 April 2021.

With regards to Assessment 2, HMRC requests the Tribunal to vary this assessment to nil, on the basis that it covered the same period as Assessment 1.

With regards to Assessment 3, HMRC acknowledge that the assessment was not notified to CSEL until 18 June 2024, although it had been raised in HMRC’s systems on 28 October 2021.

It covers the accounting period ended 28 October 2021, in the tax year ending 5 April 2021 and is for an amount £51,249.68.

HMRC submit that this is a live assessment but invites the Tribunal to vary it to nil, on the basis that it covered the same period as Assessment 4.

With regards to Assessment 4, HMRC acknowledge that the correspondence they issued purporting to amend this assessment were not within HMRC’s powers and therefore the original assessment remains live in this appeal.

The assessment covers the accounting period ending 27 October 2021, for the tax year ending 5 April 2021 in the amount of £28,236.42.

HMRC invites the Tribunal to reduce this assessment to £18,311.41, which is the amount the review officer calculated.

In summary, therefore, HMRC asks this Tribunal to uphold assessments 1 and 4, but to reduce the amounts assessed to £44,310.36 and £18,311.41, giving rise to a total of £62,621.77.