Conservatory Insulations Northwest Ltd – FTT – ECN for underpaid tax – whether HMRC raised assessment in time – no – taxpayer win
- Error Correction Notice and Acknowledgment: The taxpayer’s agent filed an error correction notice for overpaid tax on 15 July 2022, which HMRC acknowledged via an automated email. However, HMRC later claimed to have no record of this notice, leading the agent to submit another copy on 22 May 2023 after following up with HMRC.
- Assessment Timing Dispute: The First-tier Tribunal (FTT) determined that although an assessment was completed by an officer on 27 June 2023, it was not valid until it was counter-signed on 18 July 2023. The taxpayer argued that since the assessment occurred more than a year after HMRC received the error correction notice, it was made outside the statutory time limits.
- FTT Ruling: The FTT ruled in favor of the taxpayer, allowing the appeal on the grounds that the assessment was indeed made after the statutory period, confirming the importance of timely processing of error correction notices by HMRC in tax matters.
To access the decision, click here.
Source KPMG
- Conservatory Insulations Northwest appealed to the First Tier Tribunal in 2023 against HMRC assessments for specific periods.
- The company’s accountant filed an error correction notice with HMRC on 15 July 2022.
- The notice explained the errors and outlined steps to prevent future errors.
- HMRC confirmed receipt of the notice via email.
- HMRC lost or misfiled the error correction notice.
- The accountant resent the notice in May 2023.
- A phone call with HMRC revealed no record of the original notice.
Source: accountancydaily.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
