TC09629 - [2025] UKFTT 01070 (TC)

The background facts of this appeal are broadly agreed.  

Smart is run and managed by Directors Ian Hallam and Joshua Yardley who were also its directors for the relevant period.  

Smart is involved in the sale of a variety of goods. It made claims under CJRS in relation to both directors from the period of 1 April 2020 to 31 March 2021. 

On 8 September 2022, HMRC initiated an enquiry into the payments claimed by Smart. Smart co-operated and provided information and documentation via its bookkeeper, Julia Wylie of Cloud Booking.  

On 8 November 2022 Smart was notified by HMRC that they had found errors, and had recalculated the payments that should have been claimed.  

Cloud Booking took responsibility for the erroneous claims and provided email correspondence which purported to explain the error.  

Cloud Booking explained that any error that any taken place had occurred because it did it did not see an email from director, Ian Hallam dated 5 November 2021 prior to processing payroll for October 2021. This email asked for salaries for each director to be increased to £3,250.00 from 1 October 2020.  

HMRC maintained its position and stated an over payment had been claimed. An Assessment was made by HMRC on 10 January 2023 with Smart being informed by letter on 11 January 2023.  

Smart requested an independent review on 28 February 2023. HMRC maintained its stance. A further review was requested with a review conclusion letter being issued on 15 May 2023. It was in this final review that HMRC increased the amount of overpayment from £18,236.80 to £18.335.60. 

Smart appealed to this Tribunal on 16 June 2023.