UT/2024/000022 - [2025] UKUT 00309 (TCC)

This is an appeal against a decision of the First-tier Tribunal (Tax Chamber) (“FTT”) in Tajinder Singh Pawar v HMRC [2023] UKFTT 81 (TC) (“FTT Decision”). The FTT Decision concerned the Appellant’s application for permission to bring a late appeal against an HMRC review decision of 19 November 2018 that had upheld a Penalty Liability Notice made by HMRC on 5 October 2017 under paragraph 19(1) of Schedule 24 Finance Act 2007 (“PLN”).

The PLN made Mr Pawar personally liable for 100% of a penalty totalling £874,238, which HMRC had imposed on First Stop Wholesale Limited (“the Company”), a company of which Mr Pawar was a director and shareholder, in respect of errors in the Company’s VAT returns.

Mr Pawar sought to appeal the PLN on 22 February 2022, which it was common ground was 3 years and 2 months after the 30 day statutory deadline for appealing against HMRC’s review decision. The FTT, having considered whether to exercise its discretion to permit the appeal to proceed out of time using the three stage approach suggested by the Upper Tribunal in Martland v HMRC [2018] UKUT 178 (TCC),dismissed Mr Pawar’s late appeal application.

With the permission of the Upper Tribunal, Mr Pawar now appeals on the grounds that the FTT erred in law by failing to take into account relevant factors, or by misapplying the relevant legal principles in exercising its discretion to refuse permission for the late appeal to be brought.

In their submissions to us the parties referred to the then forthcoming decision of the Upper Tribunal in Medpro HealthcareLtd andKalvinder Ruprai v HMRC [2025] UKUT 00255 (TCC) (“Medpro UT”), which was released on 30 July 2025. We invited the parties to make submissions on the effect of that decision on the present appeal and in the light of the decision and those submissions we have decided that we should set aside and remake the FTT's decision in the case before us. Our decision is to refuse permission for a late appeal.