David Bedenham (instructed by Taj Barring, DWF LLP) appeared for a labour provider company in an appeal against a Kittel assessment and a s69C penalty.

David raised time limit arguments in relation to both the assessment and the penalty. HMRC subsequently accepted that the penalty was out of time and withdrew it shortly before trial. However, HMRC maintained that the Kittel assessment was in time.  David cross-examined the decision maker as to HMRC’s state of knowledge and prepared detailed written submissions. On the last day of the hearing, HMRC conceded that the Kittel assessment should be reduced by almost 70%, and the FTT therefore allowed the appeal in part.

The full decision can be found here.

This is the latest in a number of recent Kittel and personal liability cases in which David has been instructed. See, for example:

• Cheema Construction Services v HMRC (Kittel, s69C penalty and 69D personal liability) – appeal allowed in full.
• Lynton Exports Ltd v HMRC (£4.8million Kittel and Mecsek assessments) – appeal allowed in full.
• PTGI Ltd v HMRC (£19million Kittel assessment) – appeal allowed in full.
• Bachra v HMRC (£1miilion personal penalty arising from a Kittel decision) – appeal allowed in full.
• Ulster Metal Refiners Ltd v HMRC (£460,000 Kittel decision) – appeal allowed in relation to 90% of the disputed input tax.

David has also secured a number of wins in unreported Kittel cases including:

• XY v HMRC (December 2024) where, following representations drafted by David, HMRC withdrew a £3million s69D personal penalty.
• Z Limited v HMRC (October 2023) where, following David’s opening submissions, HMRC conceded a £15million Kittel/Fini case against an employment intermediary that had been using a mini-umbrella company model.