Hive Umbrella Limited v The Commissioners for HMRC

Decision date: 7 September 2023

Neutral citation: [2023] UKFTT 753 (TC)

Overall AI summary confidence: medium

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: medium

Hive Umbrella Ltd applied for permission to bring a 27‑day late appeal against HMRC's allocation of a scheme reference number under FA 2004. The tribunal applied the three‑stage Martland/Denton approach (length of delay; reasons for delay; overall evaluation including prejudice) and, although it found the appellant's reasons for delay unmeritorious, concluded the short delay and the prejudice the appellant would suffer from statutory consequences justified granting permission. The late appeal was allowed.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: medium

The tribunal treated the Martland/Denton three‑stage framework as the appropriate discretionary test for permitting late appeals under FA 2004: assess the length of the delay, the reasons (with attention to evidential support and attribution of adviser failings to the appellant), and then balance all circumstances including prejudice and the overriding objective. It held that even weak reasons can be outweighed by a short delay together with significant prejudice to the appellant, justifying permission.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The judgment suggested several non‑binding observations: the percentage of lateness relative to the statutory window is of limited assistance and factual; HMRC must show specific prejudice from a short delay rather than general assertions; and prior engagement with HMRC (e.g. indicating intent to appeal) is relevant but does not replace lodging a timely protective appeal.