People Services Solution Ltd v The Commissioners for HMRC
Decision date: 22 September 2023
Neutral citation: [2023] UKFTT 786 (TC)
Overall AI summary confidence: medium
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
This case concerned whether the First-tier Tribunal should admit three late appeals by People Services Solution Ltd against large VAT assessments and a deregistration decision; the appeals were 15–16 days late. Applying the Martland approach, the Tribunal found the delays short but serious given the sums involved, gave limited weight to the director’s later medical evidence and rejected postal delay and lack of funds as explanations, and ultimately granted permission to admit the late appeals. The Tribunal directed the parties to agree case management steps to conjoin/consolidate the three late appeals with a fourth timely appeal.
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
The Tribunal applied the Martland three-stage test for admission of late VAT appeals — assessing (1) the length of the delay, (2) the reasons for it (requiring specific, contemporaneous evidence where possible), and (3) balancing all circumstances including prejudice to HMRC and the appellant’s prospects — and admitted the appeals after finding the short delays, limited medical evidence, and overall circumstances justified admission.
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 indicates that non-contemporaneous or generic medical evidence weakens a claim that mental ill-health explains delay, and that voluntary substance misuse may further diminish the weight of such an excuse; it also notes that short delays over public holidays are not automatically excused and that a full merits inquiry is generally inappropriate at the permission stage, though the appellant must show its case is not hopeless.