Jonathan Manguiat v The Commissioners for HMRC
[2023] UKFTT 312 (TC)
Clive Green v The Commissioners for HMRC
1 December 2023
[2023] UKFTT 1006 (TC)
First-tier Tribunal
Someone appealed late against tax bills. The court said the delay was too long, even though the person didn't know about the tax rules earlier. The court didn't think they'd win if they appealed on time, so they refused the late appeal.
Key Facts
- •Clive Green appealed late (1067 days) against discovery assessments for High Income Child Benefit Charge (HICBC) for tax years 2014-17.
- •Assessments issued 9 October 2018; appeal submitted 10 October 2021.
- •Green paid the assessments in full on 1 November 2018.
- •Green claimed he was unaware of HICBC until August 2018 and believed he had no grounds for appeal until discovering the Wilkes case (October 2021).
- •HMRC opposed the late appeal application.
Legal Principles
Late appeal applications are subject to judicial discretion, guided by the three-stage process in *Martland v HMRC* [2018] UKUT 178 (TCC): (1) length of delay; (2) reasons for delay; (3) evaluation of all circumstances, including prejudice to both parties and the need for efficient litigation.
*Martland v HMRC* [2018] UKUT 178 (TCC)
HMRC's discovery assessment powers under section 29 Taxes Management Act 1970 (TMA), as amended by section 97 Finance Act 2022, regarding HICBC.
Section 29 TMA, Section 97 Finance Act 2022
Section 7 TMA outlines notification requirements for income tax liability, including HICBC.
Section 7 TMA
In *HMRC v Jason Wilkes* [2020] UKUT 0150 (TCC), the Upper Tribunal ruled that HMRC lacked power to make discovery assessments for HICBC before the amendment in the Finance Act 2022.
*HMRC v Jason Wilkes* [2020] UKUT 0150 (TCC)
The need for efficient litigation and compliance with statutory time limits are given particular weight when considering late appeals. *HMRC v BMW Shipping Agents* [2021] UKUT 0091 supports this.
*HMRC v BMW Shipping Agents* [2021] UKUT 0091
Outcomes
The Tribunal dismissed Green's application for permission to make a late appeal.
The delay was significant (1067 days). While the Tribunal accepted Green's lack of prior knowledge of HICBC, his reasons for the delay weren't deemed sufficient. The Tribunal considered his chances of success in a substantive appeal to be very low given the timing of the appeal and the likelihood of HMRC providing evidence of a valid discovery assessment.