TC09677 - [2025] UKFTT 01282 (TC)

In determining this application, I have considered rule 5(1)(j) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (‘Tribunal Rules’), which provides that the Tribunal may by direction stay proceedings, and I am mindful of the overriding objective set out in rule 2 of the Tribunal Rules as follows:

“Overriding objective and parties’ obligation to co-operate with the Tribunal

2.—(1) The overriding objective of these Rules is to enable the Tribunal to deal with cases fairly and justly.

(2)

Dealing with a case fairly and justly includes—

(a)

dealing with the case in ways which are proportionate to the importance of the case, the complexity of the issues, the anticipated costs and the resources of the parties;

(b)

avoiding unnecessary formality and seeking flexibility in the proceedings;

(c)

ensuring, so far as practicable, that the parties are able to participate fully in the proceedings;

(d)

using any special expertise of the Tribunal effectively; and

(e)

avoiding delay, so far as compatible with proper consideration of the issues.

(3)

The Tribunal must seek to give effect to the overriding objective when it—

(a)

exercises any power under these Rules; or

(b)

interprets any rule or practice direction.

(4)

Parties must—

(a)

help the Tribunal to further the overriding objective; and

(b)

co-operate with the Tribunal generally.”

I have also considered section 84 VAT Act 1994, which provides that an appeal under section 83 of that Act (such as this one) shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.

In respect of the position regarding hardship, section 84(3B) provides:

“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.”