UT (Tax & Chancery) UT-2024-000098 - [2025] UKUT 00247 (TCC)

This appeal concerns the Respondent’s entitlement to coronavirus support payments pursuant to the Self-Employment Income Support Scheme (the “SEISS”).

The Appellants (“HMRC”) appeal against the decision of the First-tier Tribunal (the “FTT”) dated 4 April 2024 (the “Decision”). The FTT allowed in part the Respondent’s appeal against an assessment (the “Assessment”) issued to him by HMRC on 15 December 2021 under paragraph 9 of Schedule 16 to the Finance Act 2020 (“FA 2020”).

The Assessment totalled £12,918.00. It related to the recovery of two coronavirus support payments received by the Respondent under the SEISS during the tax year ended 5 April 2021. The Respondent had made his first SEISS claim on 18 May 2020 (the “First Claim”), following which a payment of £6,890.00 was made to him on 26 May 2020. He then made a further SEISS claim on 8 September 2020 (the “Second Claim”), and a further payment of £6,028.00 was made to him on 16 September 2020.

HMRC subsequently determined that the Respondent was not entitled to either of those payments because, at the times when the First and Second Claims were made, the Respondent was not a “qualifying person” within the meaning of paragraph 3.2 of the Schedule to the First SEISS Direction. In particular, HMRC considered that at the times of making his claims the Respondent was not a self-employed individual. They considered that the Respondent was the director or employee of a limited company which was trading and on whose behalf he was performing the services. HMRC therefore issued the Assessment to recover the payments made as income tax.

The Respondent appealed against the Assessment, and the FTT upheld his appeal in relation to the First Claim, but not in relation to the Second Claim.

In its appeal to the Upper Tribunal (“UT”) HMRC submit that, whilst the FTT reached the correct conclusion as regards the Second Claim, the Decision is flawed in respect of both claims because it contains material errors of law.

The FTT granted HMRC permission to appeal to the UT on two grounds:

HMRC invited the UT to set aside the Decision and to re-make it on the basis of the statutory eligibility test, by virtue of its powers under s.12 of the Tribunals, Courts and Enforcement Act 2007 (“TCEA”). The Respondent submits that the FTT did not err in law in making the Decision and the appeal to the UT should be dismissed.

Ms Laura Inglis of counsel appeared for HMRC and the Respondent appeared in person at the hearing on 21 May 2025. We are grateful to them both for their written and oral submissions.