TC09611 - [2025] UKFTT 00987 (TC)

Fecha: 14-Ago-2025

Matters under appeal

Matters under appeal

The matters in dispute are the decisions by the Respondents:

(a)

to reduce the 02/21 VAT repayment claim from £1,827.61 to nil. The decision dated 7 February 2021 was made in accordance with section 25(3) of VATA and was upheld in a Review Conclusion letter dated 11 February 2022;

(b)

to issue a VAT assessment in the sum of £31,258 for the VAT periods 05/17 to 11/20 inclusive. The assessment was dated 29 March 2022 and was made in accordance with section 73 VATA;

(c)

to issue a penalty assessment in the amount of £298.81 relating to the VAT period 02/21. The penalty assessment dated 23 May 2022 was issued pursuant to Schedule 24 Finance Act 2007 (“FA07”);

(d)

to issue a penalty assessment in the amount of £6,612.29 relating to the VAT periods 05/17 to 11/20 inclusive. The penalty assessment dated 23 May 2022 was issued pursuant to Schedule 24 FA07;

(e)

to deregister Mr Webb for VAT with effect from 28 February 2021.

In summary, in relation to the first issue, HMRC had found that the supplies were exempt from VAT and that Mr Webb was not entitled to a VAT repayment relating to those supplies. That being the case, HMRC then sought to recover the VAT repayments for the earlier periods, deregistered Mr Webb for VAT and issued the penalty assessments.

As far as the assessments and penalties are concerned Ms Brown conceded that the assessments for periods 05/17 to 02/18 inclusive had not been issued timeously and therefore both they and the related penalties were not valid. The assessment for 05/18 had never been issued so it too was not valid and nor was the associated penalty.

10.

Accordingly, the VAT returns and penalties for periods 08/18 to 02/21 inclusive, together with the decision relating to period 02/21 and the decision to deregister were now the only subject matter of the appeal.

11.

The quantum is as set out in this table which is derived from the Alternative Dispute Resolution (“ADR”) Record of Outcome as amended by deletion of the admittedly invalid assessments and penalties:

Appeal Reference	VAT period	Assessment (£)	Penalty charged (£)
TC/2022/13869	02/21	**	298.81
	11/20	2387	390.27
	08/20	2262	369.83
	05/20	1536	251.13
	11/19	765	125.07
	08/19	2624	429.02
	05/19	2530	413.65
	02/19	2391	608.50
	11/18	2463	626.83
	08/18	2361	600.87
Total		21,971	4,248.77