Nicholas Dounetas v The Commissioners for HMRC

Decision date: 24 November 2025

Neutral citation: [2025] UKFTT 1416 (TC)

Overall AI summary confidence: high

AI Notice: Any short overview, ratio decidendi summary or obiter dicta summary shown on this page is AI-generated, provided only to help users assess potential relevance more quickly, and may be wholly inaccurate. No liability is accepted for the accuracy of any such summary, regardless of any AI confidence rating shown. Users should check the underlying decision and obtain appropriate legal advice rather than relying on any summary.

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 case concerns an application for permission to appeal out of time against a 19 December 2023 HMRC closure notice that treated income as PAYE/IR35, increasing tax liability. The Tribunal applied the three-stage test for late appeals, found the delay (five-plus months to appeal to HMRC and further delay to the Tribunal) serious with no good reason shown, and found the substantive merits did not carry significant weight because the engager had treated the appellant as a deemed employee and deducted PAYE/NI. Permission to appeal late was refused.

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 attempts to contact HMRC by telephone and the absence of agent authorisation on HMRC’s file as insufficient to establish a good reason for failing to make the required written appeal; failures by an appellant’s adviser are generally attributed to the appellant when assessing late appeal applications. Where delay is lengthy and the substantive case lacks significant merit, permission to appeal out of time should be refused.

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 indicated that admission of late HMRC documents can be appropriate if they materially assist in explaining delay, and that even if wider public-interest factors were weighed differently, the combination of long delay and weak merits would likely produce the same refusal outcome.