Waynefleet Limited v The Commissioners for HMRC
[2023] UKFTT 710 (TC)
Massala Exotic Limited v The Commissioners for HMRC
13 July 2023
[2023] UKFTT 621 (TC)
First-tier Tribunal
A company couldn't pay its taxes and the court said it didn't have to. Another person tried to appeal a fine too early, so the court told the tax office to finish processing his appeal first.
Key Facts
- •Massala Exotic Limited (company) assessed for £280,903 VAT (22 November 2019).
- •Company applied for hardship, denied by HMRC, appealed to the Tribunal.
- •Khosru Miah (Mr. Miah) issued a Personal Liability Notice (PLN) for £176,966.37 penalty.
- •Mr. Miah's appeal against the PLN was deemed premature.
- •Company ceased trading in January 2020.
- •Mr. Miah's accountant requested an independent review of the PLN in October 2020.
- •HMRC's response to the review request was unclear whether it constituted a conclusion.
Legal Principles
Hardship under section 84 VATA: Appeal entertained if paying VAT would cause hardship.
Section 84 Value Added Tax Act 1994 (VATA)
Hardship assessment considers immediately available resources, not future possibilities.
NT ADA Limited v HMRC [2019] UKFTT 0333, summarising HMRC v Elbrook (Cash & Carry) Limited [2017] UKUT 181 (TCC)
Late appeals under section 83C and 83G VATA: Appeal can only be made after a review conclusion.
Section 83C and 83G Value Added Tax Act 1994 (VATA)
Outcomes
Company's hardship application granted.
Company has no resources to pay the VAT; would suffer hardship.
Directions made for HMRC to issue a review conclusion letter regarding Mr. Miah's PLN.
Mr. Miah's appeal was premature; no clear review conclusion letter issued.