T09636 - [2025] UKFTT 01099 (TC)

The appellant’s appeal to HMRC in respect of the penalties imposed in both 2016/17 and 2017/18 was rejected by HMRC in a letter of 19 June 2023.

On 8 July 2023 the appellant requested a review of HMRC’s decision in respect of the penalties imposed in both tax years. HMRC upheld their decision on review in respect of the penalties imposed for the 2016/17 tax year in a letter of 4 December 2023. However, although the appellant had plainly requested a review in respect of the penalties imposed in the 2017/18 tax year the letter did not make any reference to those penalties/that tax year. HMRC said this was an error as an entry on their internal system seems to show; the review was intended to apply to both years and all the same points apply to the penalties imposed in the 2017/18 tax year as made in the letter of 4 December 2023 in relation to the penalties imposed in the 2016/17 tax year.

The appellant then appealed to the tribunal in respect of the penalties imposed in both tax years and sent the tribunal the review letter dated 4 December 2023.

Under s 49A where, as in this case, a notice of appeal against a decision such as this has been given to HMRC, the appellant may notify HMRC that the appellant requires HMRC to review the matter in question (see s 49B), or may proceed directly to notifying the appeal to the tribunal. In this case the appellant requested a review as set out above.

Under s 49B TMA if the appellant notifies HMRC that the appellant requires HMRC to review the matter in question (1) HMRC must, within the relevant period (broadly 30 days after the notification is received or such longer period as is reasonable), notify the appellant of HMRC’s view of the matter in question, and (2) HMRC must review the matter in question in accordance with s 49E.

Under s 49D if notice of appeal has been given to HMRC, (a) the appellant may notify the appeal to the tribunal, and if it does so, the tribunal is to decide the matter in question, and (b) that does not apply where HMRC have given a notification of their view of the matter in question under section 49B. In that case the appellant may notify the appeal to the tribunal, but only if permitted to do so by section 49G.

Under s 49E HMRC must notify the appellant of the conclusions of the review and their reasoning broadly within a period of 45 days or such other period as may be agreed. Under sub-s (8) where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified the review is to be treated as having concluded that HMRC’s view of the matter in question is upheld and, in that case, under sub-s (9) HMRC must notify the appellant of the conclusion which the review is treated as having reached

Under s 49G if (a) HMRC have given notice of the conclusions of a review in accordance with section 49E, or (b) the period specified in section 49E(6) has ended and HMRC have not given notice of the conclusions of the review, the appellant may notify the appeal to the tribunal within “the post-review period” or if that period has ended may do so only if the tribunal gives permission. If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.