People Services Solution Ltd v The Commissioners for HMRC
[2023] UKFTT 786 (TC)
P. R. B. Trading Limited v The Commissioners for HMRC
15 May 2023
[2023] UKFTT 421 (TC)
First-tier Tribunal
A company's appeals against tax bills were late. The judge let them proceed because the company's boss was very sick and had many problems, while the tax authority hadn't been significantly harmed by the delay and was aware of the company's attempts to appeal.
Key Facts
- •P.R.B. Trading Limited appealed against VAT assessments and a penalty assessment.
- •The appeals were made outside the 30-day time limit stipulated in section 83G of the Value Added Tax Act 1994.
- •The appellant argued that the delays were due to HMRC's actions, including difficulties in communication and the provision of documents.
- •The appellant's director, Mr. Boland, experienced significant health issues and personal difficulties during the period in question.
- •HMRC argued that the delays were serious and significant, without good reason, and that permitting the appeals would cause prejudice.
Legal Principles
Time limit for appeals under section 83 of the VAT Act 1994.
Value Added Tax Act 1994, section 83G
Requirement to offer a review under section 83A of the VAT Act 1994.
Value Added Tax Act 1994, section 83A
Tribunal's power to grant permission for late appeals.
Value Added Tax Act 1994, section 83G(6)
Three-stage test for considering late appeals (Denton test).
Denton and others v TH White Limited and others [2014] EWCA Civ 906
Effect of non-compliance with tribunal rules.
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, rule 7
Outcomes
The appeal against the assessment notified on 12 November 2018 was deemed in time.
The appeal was submitted within the 30-day time limit.
Permission was granted for the late appeals against the other VAT assessments and the penalty assessment.
The tribunal considered the serious delays, the reasons for the delays, and the balance of prejudice to both parties. The significant prejudice to the appellant, coupled with the lack of significant prejudice to HMRC, tipped the balance in favor of permitting the late appeals. HMRC’s own actions and knowledge of the appeal also contributed to this decision.