Alesen Direct Solutions Ltd v Revenue and Customs (Company undertaking construction work; VAT assessment; hardship application; company made advances to related entities/persons; hardship denied) [2026] UKFTT 398 (TC) (13 March 2026)

Parties

Procedural Posture

VAT Hardship Application in Tax Appeal / Interlocutory Application Before Substantive Appeal

Legal Issues

1. 1 Whether the appellant should be permitted to proceed with its VAT appeal without paying or depositing the disputed tax on grounds of hardship

Ratio Decidendi

The appellant's inability to pay the disputed VAT was the result of voluntary actions to divest itself of funds after learning of the payment requirement, with the intention of creating the appearance of hardship. Hardship relief is not available where the appellant is the author of its own hardship.

Court Disposition

Application for hardship refused; appeal may not proceed without payment or deposit of VAT in dispute.

Orders

• The appellant's application to proceed with the appeal without paying or depositing the disputed VAT is refused.