Recep Acar v The Commissioners for HMRC
[2024] UKFTT 182 (TC)
The Tyre Company (NI) Limited & Anor v The Commissioners for HMRC
30 May 2024
[2024] UKFTT 461 (TC)
First-tier Tribunal
A company's accountant missed the deadline to appeal tax assessments. The court said the company was responsible for the accountant's mistake and refused to hear their late appeal, even though the company might have had a good case on the tax issues.
Key Facts
- •Three late appeals against VAT and penalty assessments, and a personal liability notice.
- •Delays of 17 months (VAT assessment 1), 12 months (VAT assessment 2), and 4.5 months (penalty and PLN).
- •Appellant's advisor, Mr. McCreesh, pursued complaints with HMRC instead of appealing within the statutory time limits.
- •HMRC offered multiple opportunities to submit further evidence, conditional upon a reasonable excuse for lateness.
- •Appellant argued they had an arguable case based on evidence of tyre exports to Ireland.
Legal Principles
Three-stage Denton test for late appeals: (1) length of delay; (2) reason for delay; (3) all circumstances of the case.
Denton and others v TH White Limited and others [2014] EWCA Civ 906; William Martland v The Commissioners for HM Revenue and Customs [2018] UKUT 0178 (TCC); The Commissioners for Her Majesty’s Revcenue & Customs v Websons (8) Limited [2020] UKUT 0154 (TCC)
Permission to appeal out of time should only be granted exceptionally.
Romasave (cited in Martland)
Appellants bear the consequences of their representative's failings; remedy lies in pursuing a claim against the representative.
The Commissioners for Her Majesty’s Revenue and Customs v Muhammed Hafeez Katib [2019] UKUT 0189 (TCC)
A representative's delay doesn't provide a reasonable excuse for the appellant's late submission.
Ryan V Revenue and Customs Commissioners [2012] STC 899
Importance of respecting statutory time limits and efficient litigation.
Martland, Katib, BPP Holdings Limited v The Commissioners for Her Majesty’s Revenue and Customs [2016] EWCA Civ121
Merits of the appeal should only be considered in outline to assess strength/weakness, not in detail.
Martland, Hysaj (cited in Martland)
Outcomes
Applications for permission to appeal were refused.
Significant and serious delays, no good reason for the delay (advisor's actions), and considering all circumstances.