Archer v Revenue & Customs (Validity of surcharge notices under Section 59C TMA - notice not sent to taxpayer) [2020] UKFTT 288 (TC) (08 July 2020)

Parties

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

1. 1 Whether manually issued surcharge notices under Section 59C TMA are valid when original computer-generated notices were not served
2. 2 Whether HMRC can issue additional surcharge notices for the same period and default
3. 3 Whether the taxpayer had a reasonable excuse for late payment due to ongoing judicial review and HMRC undertakings

Ratio Decidendi

The Tribunal held that the manually issued February Notices were valid surcharge notices under Section 59C TMA because they were sufficiently proximate to the original imposition date and there was no statutory bar to issuing a replacement notice when the original was not served. The Tribunal also found that the additional surcharge notice was valid as it arose from a later change in circumstances. Mr Archer did not have a reasonable excuse for late payment beyond the Court of Appeal decision, and payment was not made without unreasonable delay after that point.

Court Disposition

Appeal allowed in part, dismissed in part

Orders

• Appeal against the Second Surcharge Notices allowed as they were not served and are invalid.
• Appeal against the February Notices and Additional Surcharge Notice dismissed; these notices are valid and surcharges stand.