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 (tax Appeal) / First Tier Tribunal Decision on Hardship Application Prior to Substantive Appeal

Legal Issues

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

Ratio Decidendi

The appellant's inability to pay the VAT in dispute was the result of its own voluntary actions in returning funds to a related party and making advances to related companies after becoming aware of the payment requirement. Hardship relief is not available where the appellant has deliberately created its own impecuniosity to avoid the statutory requirement.

Court Disposition

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

Orders

• The appellant is not permitted to proceed with its appeal without paying or depositing the VAT assessed.