MYPAY LTD v Revenue & Customs (PROCEDURE : application to amend grounds of appeal - whether real prospect of success –prejudice to the parties - application refused) [2023] UKFTT 890 (TC) (23 October 2023)

Parties

Procedural Posture

Tax Appeal / Application to Amend Grounds of Appeal

Legal Issues

1. 1 Whether Mypay may amend its grounds of appeal to argue, in the alternative, that no employment contract existed with workers if the Tribunal accepts HMRC's construction approach
2. 2 Whether the proposed amendment has a real prospect of success
3. 3 Whether the timing and prejudice to parties justify granting permission to amend

Ratio Decidendi

The application to amend Mypay's grounds of appeal to include the Additional Ground was refused because the proposed amendment lacked any real prospect of success, was inconsistent with the contemporaneous documentation and contractual language, and would prejudice HMRC due to statutory time limits for recovering tax. Even if the Additional Ground had merit, permission would have been refused due to prejudice and lack of timely raising the argument.

Court Disposition

Application refused

Orders

• Mypay refused permission to amend grounds of appeal to rely on the Additional Ground
• Mypay granted permission to rely on grounds 3 and 4 in draft amended grounds of appeal dated 24 January 2022