Jeffries & Sons v The Commissioners for HMRC

14 November 2024

[2024] UKFTT 1031 (TC)

First-tier Tribunal

A company tried to appeal a tax bill nine years late. Even though they probably should have won, the judge said they waited too long and refused the appeal. The judge said it's important to follow the rules and appeal within the time limit, even if you have a good case.

Key Facts

•Jeffries & Sons (Appellant) applied for permission to bring a late appeal against a £103,009 VAT assessment, plus interest.
•The dispute stemmed from the Rank Group litigation concerning VAT treatment of gaming machines.
•HMRC initially refused the Appellant's 2006 claim, then paid it in 2013 while issuing a 'protective assessment'.
•The Appellant repaid the VAT in 2014 after the Court of Appeal ruling in HMRC's favour.
•The Appellant's initial 2013 appeal was withdrawn in 2016.
•The current appeal, filed in 2022, was over nine years late.

Legal Principles

Guidance on admitting late appeals, emphasizing the importance of respecting statutory time limits.

William Martland v HMRC [2018] UKUT 178 (TCC)

Importance of observing statutory time limits in admitting late appeals.

HMRC v Websons (8) Ltd [2020] UKUT 154 (TCC)

Value Added Tax Act 1994 (VATA 1994), sections 80(1), 80(4A), 83(1)(t), and 83G regarding output tax, assessment of excess credit, appeal rights, and time limits for appeals.

Value Added Tax Act 1994

Outcomes

Application for permission to bring a late appeal refused.

The significant delay (over nine years) and lack of a good reason for the delay after 2016, outweighed the Appellant's strong case and limited prejudice to HMRC. The court emphasized the need to respect statutory time limits.

Jeffries & Sons v The Commissioners for HMRC

Key Facts

Legal Principles

Outcomes

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