Non-compliance with an unless order

The taxpayers who were farmers in Northern Ireland appealed against VAT assessments. In October 2018 they were directed to submit a hardship application. The direction included an ‘unless’ order ie unless the taxpayers substantiated their application the appeal would be struck out. The taxpayers failed to comply so their appeal was struck out. They applied to have their appeal reinstated but HMRC resisted.

The First-tier Tribunal said the taxpayers had breached the unless order. It was the taxpayers’ responsibility to justify hardship to HMRC not to the tribunal but the email the taxpayers had sent in that respect had gone only to the tribunal not to HMRC. This was a breach of the order. However the intention had been to send the email to HMRC and the taxpayers remedied this shortly afterwards albeit seven hours after the deadline. This the...