TC09630 - [2025] UKFTT 01071 (TC)

Once the circumstances have been identified, they must be balanced.

On one side of the scales is the prejudice to Mr Di Lellio if he loses this opportunity of appealing to the Tribunal because the tax and penalties will become due, and his bankruptcy proceedings will recommence. However, we have given little weight to that factor.

On the other side is Mr Di Lellio’s failure to comply with the statutory time limits for between six and seven years; the weakness of his substantive case, and the prejudice to HMRC and to appellants in other cases for the reasons set out above. There is no doubt that those factors significantly outweigh those on Mr Di Lellio’s side of the scales, and permission to appeal late is therefore refused.

As noted earlier in this decision, HMRC had issued assessments and related penalties to Da Remo Restaurants Ltd, and on 8 November 2018 and 25 January 2019 issued PLNs to Mr Di Lellio. In April 2020, HMRC withdrew those assessments and cancelled the penalties. However, the PLNs remained extant.

The PLNs were issued under Finance Act 2007, Schedule 24, para 19, which by subparagraph (1), provides:

“Where a penalty under paragraph 1 is payable by a company for a deliberate inaccuracy which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as HMRC may specify by written notice to the officer.”

We asked whether HMRC had considered whether a PLN could remain extant when the penalty to which it related had been cancelled. Ms Man said she would refer this point to the relevant technical team, and having done so, would respond to Mr Di Lellio.

However, we emphasise whether the PLNs remain payable is a matter between HMRC and Mr Di Lellio; it was not before the Tribunal for determination.

This document contains full findings of fact and reasons for the Decision. Any party dissatisfied with this Decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Rules. The application must be received by this Tribunal not later than 56 days after this Decision is sent to that party. The parties are referred to "Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)" which accompanies and forms part of this Decision notice.