TC09510 - [2025] UKFTT 00501 (TC)

This is an application by the Appellant for costs in relation to making an appeal to the Tribunal. The timeline of events is as follows:

On 6 and 7 June 2023, HMRC issued appealable decisions to deny input tax to the Appellant for various periods between 2019 and 2023.

The Appellant asked for a review on 21 June 2023. The letter asking for a review was extremely detailed, pointing out among other things that the Appellant had had a recent (August 2019) on site visit from HMRC, who had been shown in detail the methods the company used for recording input VAT. Minor observations were made by the officer who visited the premises but the main matter at issue in the assessments (whether certain invoices were adequate to claim input VAT) was specifically looked at and no issues raised.

HMRC acknowledged the request for a review on 21 June 2023 and enquired whether ADR was being considered.

Later on 21 June the Appellant pointed out to HMRC that ADR was only applicable after an appeal had been made to the Tribunal.

HMRC issued a review letter upholding the decision on 10 November 2023. This review letter did not address the significant points made in the very detailed letter of 21 June 2023 from the Appellant, nor did it mention at all the visit made by HMRC to the Appellant in 2019 and any matters covered in that visit.

The Appellant complained to HMRC about the handling of the review on 21 November 2023.

The Appellant appealed to the Tribunal on 30 November 2023 and made a hardship application on 1 December 2023.

There was correspondence back and forth about the hardship decision (the Tribunal was provided with the cover emails but not the attachments to the hardship emails which would detail all the evidence provided). Hardship was approved by HMRC on 14 March 2024.

Initial emails around initiating ADR were sent between January and March 2024.

On 17 April 2024 (a Wednesday) the Tribunal wrote to confirm hardship had been approved and therefore HMRC should produce a Statement of Case within 60 days.

On 22 April 2024 (Monday) HMRC wrote to the Tribunal saying it did not intend to defend the appeal.

The Appellant made an application for costs incurred from 17 June 2023 onwards.