Paul Tomas v The Commissioners for HMRC
[2024] UKFTT 15 (TC)
Jonathan Manguiat v The Commissioners for HMRC
14 March 2023
[2023] UKFTT 312 (TC)
First-tier Tribunal
Mr. Manguiat was late appealing tax assessments. While the judge understood why, the delay was too long, and a new law meant he'd likely lose anyway, so the appeal wasn't allowed.
Key Facts
- •Mr. Manguiat applied for permission to appeal late against discovery assessments for the High Income Child Benefit Charge (HICBC) for tax years 2015-16, 2016-17, and 2017-18, totaling £6,974.
- •The assessments were issued on March 6, 2020.
- •Mr. Manguiat initially appealed only against penalties in March 2020, not the assessments themselves.
- •He didn't appeal the assessments until February 28, 2022, after becoming aware of the Wilkes litigation.
- •Mr. Manguiat cited personal difficulties in 2020 as contributing to the delay.
Legal Principles
Late appeals are permissible if HMRC agrees or the Tribunal grants permission.
Taxes Management Act 1970 (TMA 1970), s 49(2)
The Tribunal must consider the length of the delay, reasons for the delay, and all circumstances of the case when deciding on late appeals (Martland test).
William Martland v HMRC [2018] UKUT 178 (TCC)
A delay of more than three months in appealing an assessment with a 30-day limit is considered serious and significant.
Romasave (Property Services) Ltd v HMRC [2015] UKUT 254 (TCC)
Finance Act 2022 (FA 2022), s 97 restricts the ability to challenge HICBC discovery assessments based on the Wilkes argument unless the appeal was notified before June 30, 2021.
Finance Act 2022, s 97
Outcomes
Mr. Manguiat's application for permission to appeal late was refused.
The delay of over a year and ten months was serious and significant. The primary reason for the delay was Mr. Manguiat's unawareness of the Wilkes case, which, while understandable, didn't outweigh the significant delay. Furthermore, due to FA 2022, s 97, his chances of success on appeal were deemed negligible.