Conservatory Insulations Northwest Limited v The Commissioners for HMRC
Decision date: 12 June 2025
Neutral citation: [2025] UKFTT 705 (TC)
Overall AI summary confidence: high
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: high
This appeal concerned whether a VAT assessment by HMRC was "made" within the statutory time limit. The Tribunal found HMRC's own records showed a penalty inhibit had been set, so internal guidance required a counter-signature and the assessment was not made until that counter‑signature/authorisation in mid‑July 2023; notified on 22 July 2023, it was therefore out of time. HMRC's strike‑out application was refused and the appellant's 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: high
Where HMRC's internal procedure requires authorisation (for example, a counter‑signature when a penalty inhibit is recorded), an assessment is not "made" for statutory time‑limit purposes until that required authorisation has been given; HMRC bears the burden of proving an assessment was validly made within the statutory time limits.
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 Tribunal noted that HMRC internal guidance (e.g. VAEC8820) can be determinative of whether authorisation is required in a particular case, and that the FTT has jurisdiction to determine when an assessment was made (a mixed question of fact and law), distinct from matters more appropriate for the High Court.