Advanced Hair Technology Limited v The Commissioners for HMRC
Decision date: 29 May 2025
Neutral citation: [2025] UKFTT 599 (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
Advanced Hair Technology Ltd (AHT) sought costs from HMRC for unreasonable conduct in defending a penalty after late evidence emerged. The First-tier Tribunal found HMRC acted unreasonably from the lunch adjournment on day three (28 Feb 2024) because they should have reassessed and withdrawn the penalty then but did not communicate withdrawal until just before day four evidence. The Tribunal ordered HMRC to pay AHT’s costs attributable to the penalty after that adjournment, to be assessed on the standard basis, and set a timetable for any detailed costs schedule.
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
Where evidence newly adduced at a hearing makes a respondent’s defence plainly unsustainable, the respondent must promptly reassess and, if appropriate, withdraw the contested issue; failure to do so can constitute unreasonable conduct under Rule 10(1)(b), permitting a costs award limited to the period after the respondent unreasonably persisted.
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 that where parties have agreed fixed composite fees, reasonable methods (such as imputing hourly rates or proportionate allocation) may be used to apportion costs to specific hearing periods; and that late production of short, easily understood documents may only justify a brief period for the respondent to assess whether to withdraw a contested issue.