TC09532 - [2025] UKFTT 00568 (TC)

Fecha: 09-May-2025

The Appellant’s appeal to the Tribunal

The Appellant’s appeal to the Tribunal

11.

On 13 October 2022, the Appellant’s new agent filed an appeal with the Tribunal on behalf of the Appellant. This appeal was a late appeal against the Respondents’ review decision of 13 May 2022. In the correspondence included with the appeal documents, the Appellant’s agent informed HMRC that the Appellant would not be submitting further VAT returns for any periods after 06/21 until the dispute had been resolved.

12.

The Appellant’s appeal to the Tribunal was filed just over four months late, and was also subject to the requirement that the Appellant demonstrate hardship in order to proceed without payment of the tax in dispute. The Tribunal stayed proceedings in order for the issue of hardship to be resolved. On an unknown date the Appellant apparently applied to HMRC’s ADR scheme.

13.

On 6 January 2023, HMRC informed the Appellant that they had accepted that the Appellant would suffer hardship if it was required to pay the tax in dispute for the appeal to continue. On 16 January 2023, the Appellant’s agent emailed the Tribunal:

I am now able to confirm that:

HMRC have confirmed to the Appellant that they are satisfied that the requirement to pay or deposit the amount of tax and dispute would cause the Appellant to suffer hardship (and thus they are happy for the appeal to proceed without payment of the tax allegedly due); and

HMRC had confirmed that to the Appellant that they will not oppose the application made by the Appellant for the appeal to be accepted out of time.

In relation to point two above, as a preliminary issue it is requested that the Tribunal considers whether it is able to accept the appeal out of time (as per item 20(4) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009). The party’s request that this issue is considered by the tribunal immediately given that the Appellant has made an application for Alternative Dispute Resolution (“ADR”), which cannot proceed until the appeal has been admitted by the Tribunal. ADR is considered appropriate by both the Appellant and HMRC as it will enable the relevant facts to be fully explained to HMRC. In turn, the parties are hopeful that the ADR process will avoid the need for the Tribunal to consider the substantive issue or at the very least will clarify the facts/issues that require consideration by the Tribunal.

14.

As the issue of hardship had been resolved, the Tribunal allocated this appeal to the Standard category and, on 1 February 2023, issued Directions to enable the issue of lateness to be resolved at a Tribunal hearing.

15.

On 28 February 2023, the Appellant’s agent filed various documents in compliance with the Tribunal Directions. These documents included a statement that fresh information had been put to HMRC in September 2022, that this information was not available to HMRC when it made its review decision in May 2022, and that HMRC would be unable to review the additional facts unless the Tribunal admitted the late appeal. On 13 March 2023, the Tribunal notified the parties that the lateness hearing had been listed on 17 April 2023.

16.

Despite the Appellant’s agent’s understanding that HMRC could not take account of fresh information until the issue of lateness had been resolved by the Tribunal, it appears there were discussions between the parties. On 4 April 2023, the Appellant’s sole director, Mr Moran, emailed the Tribunal to withdraw the Appellant’s appeal. In this email, Mr Moran wrote:

I am writing with some good news.

[the Appellant] and HMRC are both in agreement on what is VAT exempt & standard rate.

To that end I would like to withdraw my appeal to the Tribunal as I believe there is no need for a Tribunal moving forward.

I have CC’d Sophie Jones from HMRC (who I may add has been outstanding whilst looking at this case closely). If you require confirmation on this from HMRC, I am sure Sophie would be willing to acknowledge that both parties are both in agreement now.

I would personally like to thank you all at the Tribunal, it does feel like it has been drawn out but everyone at both HMRC and the Tribunal have been great with [the Appellant] getting it to this stage/closed off today.

Please can you advise that the Tribunal is happy to close this case for [the Appellant] & HMRC as of today.

17.

On 12 April 2023, the Tribunal acknowledged the Appellant’s withdrawal and notified both parties that any further application must be made within 28 days, i.e., by 10 May 2023.

18.

No further application was received by the Tribunal from either party. After 10 May 2023, the Tribunal file was put away and subsequently destroyed.