Meter Squared Ltd v The Commissioners For HMRC
[2024] UKFTT 884 (TC)
Monmore Properties Limited v The Commissioners for HMRC
12 February 2024
[2024] UKFTT 137 (TC)
First-tier Tribunal
HMRC assessed a company for unpaid VAT, but some of it was too late – past the legal deadline. The company appealed. Even though the company didn't clearly state the full amount of the late part in its initial appeal, the judge decided the company *was* appealing the entire late part. Because the VAT was assessed too late, the judge ruled HMRC couldn't collect that portion of the VAT.
Key Facts
- •Monmore Properties Ltd appealed HMRC's VAT assessments.
- •HMRC's assessment, issued in July 2016 and amended in 2017, included amounts for five time-barred periods (06/11 to 06/12).
- •The dispute centered on whether the entire assessment for the time-barred periods should be discharged or only the portion relating to supplies to privately funded individuals.
- •The appellant argued the whole assessment for the time-barred periods should be discharged.
- •HMRC argued only the portion relating to privately funded individuals should be discharged.
- •The appeal involved multiple consolidated appeals, concerning supplies to both publicly and privately funded individuals.
Legal Principles
Time limits for assessments are set out in section 77 VATA.
Section 77 VATA
Appeals are against decisions, not specific amounts; grounds of appeal can be amended (section 83(1), 83G(1)(a) VATA).
Sections 83(1) and 83G(1)(a) VATA
The Tribunal must consider the timing and competency of assessments (Burgess).
Burgess v Revenue and Customs [2015] UKUT 578 (TCC)
If an assessment is a global assessment, and time-barred, the whole assessment falls to be set aside (International). However, this was not a global assessment.
International Language Centres Limited v CCE [1983] STC 394
Section 80 VATA doesn't impact appeals under section 83(1)(p) VATA.
Section 80 and 83(1)(p) VATA
Tribunal procedure is flexible; amendments to grounds of appeal are permissible (Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009).
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009
HMRC bears the burden of proving a validly issued assessment within time limits (Burgess).
Burgess
The Tribunal must consider the 'bottom line figure' of the assessment (the amount of VAT due) (BUPA).
HMRC v BUPA Purchasing Ltd [2007] EWCA Civ 542
Outcomes
Appeal allowed in full in respect of the time-barred periods (06/11 to 06/12).
The assessments for the disputed periods were not valid because they were issued outside the four-year time limit in section 77(1) VATA. The Tribunal has jurisdiction to address the validity of assessments, even if not explicitly challenged in the initial pleadings, given the flexibility of Tribunal procedures and the overall context of the case. The appeal, while initially focused on a specific amount, implicitly challenged the entire assessment for the time-barred periods.
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