The First-tier Tribunal awarded costs to the taxpayer for HMRC’s unreasonable behaviour, but the amount sought by the taxpayer was considered excessive and the quantum of costs was therefore reduced.
The appellant applied to the First-tier Tribunal (FTT) for the award of costs against HM Revenue and Customs (HMRC). The appellant claimed costs as a litigant in person at an hourly rate of £19 per hour for each of 160 items (i.e., the rate prescribed by a Practice Direction). He also claimed ‘an uplift on a discretionary basis’ of 25% because of what he described as “the conduct of the respondent which…was consistently bordering on frivolous and vexatious and/or unreasonable to a high degree”. He argued that “…the matter could have been withdrawn by the respondent far earlier than it was.” The total &
