Stephen Ray v The Commissioners for HMRC
[2024] UKFTT 141 (TC)
Blocksure Limited (in liquidation) & Anor v The Commissioners for HMRC
16 May 2024
[2024] UKFTT 397 (TC)
First-tier Tribunal
A company and its director didn't appeal a tax bill on time, saying they were negotiating a payment plan. The judge said that even if they had appealed on time, they still would have lost because the tax office was right to demand the money. So, their late appeal was rejected.
Key Facts
- •Blocksure Ltd (in liquidation) and Ranvir Singh Saggu appealed late against HMRC Notices of Requirement (NoRs) for £585,109.90 security for PAYE and NICs.
- •NoRs issued 4 July 2022; appeal lodged 13 February 2023.
- •Blocksure's financial difficulties stemmed from delayed investments and payroll reporting errors.
- •HMRC considered arrears, lack of recent payments, and Blocksure's engagement.
- •The appeal considered the late appeal application and the substantive appeal against the NoRs.
- •Mr. Saggu argued that ongoing discussions with HMRC about a Time to Pay (TTP) agreement negated the need for a timely appeal.
Legal Principles
Permission for a late appeal should not be granted unless the Tribunal is satisfied it should be.
Martland v HMRC [2018] UKUT 178 (TCC)
Three-stage test for late appeals: (1) length of delay, (2) reasons for delay, (3) balancing exercise considering prejudice to both parties and merits of reasons.
Martland v HMRC [2018] UKUT 178 (TCC)
Tribunal's jurisdiction in appeals against security for PAYE/NICs is supervisory; it must be satisfied the decision was unreasonable.
Southend United Football Club Ltd v HMRC [2013] UKFTT 715 (TC)
HMRC's decision is unreasonable if it considered irrelevant matters, ignored relevant factors, or made errors of law.
Various cases cited in section 113
Regulations 97N, 97O, 97P, 97Q, 97R, 97V, 97W, 97X of the PAYE Regulations 2003 and Schedule 4, Part 3B of the Social Security (Contributions) Regulations 2001 govern the requirement for security for PAYE and NICs, including appeals and time limits.
PAYE Regulations 2003 & NICs Regulations 2001
Outcomes
Permission for a late appeal refused for both appellants.
Significant delay (over six months) not justified by the reasons given. Even if the appeal were allowed, it would likely fail on its merits as HMRC's decision to issue the NoRs was deemed reasonable based on information available at the time.