In Daine Stoney v HMRC [2025] TC09572, the First Tier Tribunal (FTT) allowed an application for a late appeal against HMRC assessments and closure notices.
Mr Stoney, assisted by Mr Bentley, applied to make a Late appeal against Assessments and Closure notices totalling £9,911.80 issued in respect of invalid claims for Enterprise Investment Scheme (EIS) relief.
- Mr Stoney registered for Self Assessment on 13 December 2018 with a view to claiming expenses.
- Tax returns were filed for the 2017-18, 2018-19 and 2019-20 tax years within the necessary deadlines.
- The tax returns, which were submitted without Mr Stoney's knowledge or authority, included claims for EIS relief, which was paid to a third party.
- The company which submitted the returns was subsequently dissolved and HMRC failed to make checks on the companies to which to amounts were repaid.
- HMRC opened an enquiry into Mr Stoney's 2018-19 and 2019-20 tax returns to check the EIS claims.
- Mr Stoney agreed that he was not eligible for EIS relief.
- HMRC issued an Assessment for the 2017-18 tax year and Closure notices for the 2018-19 and 2019-20 tax years on 19 July 2021.
- Both the assessment and the closure notices contained a section explaining Mr Stoney's Appeal rights.
- Mr Stoney's mother had severe medical conditions, which led to her disposing of Mr Stoney's post.
- Mr Stoney also suffered from dyslexia, so he struggled with reading and writing. He did not fully understand the information on the closure notices or other correspondence sent to him.
- Mr Stoney believed he had been a victim of fraud, so he spoke to HMRC on a number of occasions to ask for help, but he never had his appeal rights explained to him.
- He understood that the only option available to him was to repay the EIS relief claimed and that HMRC's decision was final.
- Mr Stoney did not make an appeal within the statutory 30-day window due to changing address and his mother disposing of his post, meaning that he did not receive any correspondence from HMRC, and his lack of understanding due to his dyslexia.
- He did not know the specifics of the case against him or how to structure and appeal, so he asked Mr Bentley to assist him in making an Appeal.
- The appeal was made four months and 12 days after the expiration of the statutory time limit.
The First Tier Tribunal (FTT) found that:
- The delay in making the appeal was both serious and significant.
- Mr Stoney struggled with reading and writing. It was accepted that Mr Stoney had not understood the contents of the letters sent to him setting out his appeal rights.
- The appeal was only made due to the involvement and assistance of Mr Bentley. The FTT were satisfied that there was a good reason for the delay.
- Mr Stoney did not know how to commence or structure an appeal, and the appeal was done on his behalf by Mr Bentley.
The application was allowed, and permission was granted for a Late appeal.
Useful guides on this topic
Appeals: Late
When can you make a late tax appeal? What conditions must be met?
Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? Can HMRC issue two alternative assessments for the same period? What are your rights of appeal and defences?
Closure notices
When does HMRC issue a Closure Notice? Can a taxpayer demand one? Are there appeal rights?
EIS: Enterprise Investment Scheme (Subscriber guide)
When can EIS relief be claimed? What are the conditions for EIS relief? What are the benefits of EIS relief?
How to appeal an HMRC decision
Disagree with an HMRC decision? How do you appeal, what type of decision can you appeal and what are your different options when you disagree with HMRC? What are the key steps in making an appeal?
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