PSI Engineering Ltd v Revenue & Customs [2011] UKFTT 765 (TC) (28 November 2011)

PSI Engineering Ltd v Revenue & Customs [2011] UKFTT 765 (TC) (28 November 2011)

The tribunal found that, in the absence of reliable contemporaneous records, the claimed costs were likely excessive. It determined a reasonable figure based on estimated hours and a realistic hourly rate for a non-qualified adviser, adding a small amount for copying and rounding up. The tribunal awarded £7,000 in total costs, requiring HMRC to pay an additional £500 beyond what had already been paid.

Citation
[2011] UKFTT 765 (TC)
Parties
Appellant: PSI Engineering Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 November 2011
Procedural Posture
VAT Costs Appeal / Costs Hearing Following Withdrawal of HMRC Defence and Award of Costs to Appellant
Outcome
Appeal allowed in part
Legal Topics
Costs Assessment, Assignment of Costs Claim, Reasonableness of Costs, Representation by Non Qualified Person
Tax Law VAT Costs Costs Assessment Assignment of Costs Claim Reasonableness of Costs Representation by Non Qualified Person

Case Brief

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Parties

PSI Engineering Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Costs Appeal / Costs Hearing Following Withdrawal of HMRC Defence and Award of Costs to Appellant

Legal Issues

  1. 1 Whether the costs claimed by the appellant were reasonable and properly evidenced
  2. 2 Whether the hourly rate and time claimed were excessive
  3. 3 Whether the assignment of the costs claim was valid

Ratio Decidendi

The tribunal found that, in the absence of reliable contemporaneous records, the claimed costs were likely excessive. It determined a reasonable figure based on estimated hours and a realistic hourly rate for a non-qualified adviser, adding a small amount for copying and rounding up. The tribunal awarded £7,000 in total costs, requiring HMRC to pay an additional £500 beyond what had already been paid.

Court Disposition

Appeal allowed in part

Orders

  • HMRC to pay an additional £500 to the appellant, making total costs awarded £7,000
  • No order for costs of the costs hearing in favour of HMRC