Judgment summary
This decision concerns an application by HMRC to strike out Paul McGuire's appeal under Rule 8 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The appeal related to HMRC's refusal of a claim for repayment of VAT under the DIY Housebuilders' Scheme, made under section 35 VATA 1994 and Regulation 201 of the Value Added Tax Regulations 1995 (paras 1 to 3).
Mr McGuire submitted a claim on 31 January 2025 seeking repayment of £43,912.41 incurred in constructing a dwelling at Upper Malone Road, Belfast (para 2). HMRC rejected the claim as submitted outside the time limit prescribed by Regulation 201, and upheld that decision on statutory review by letter dated 8 October 2025 (para 3).
The Tribunal found that the completion certificate recorded a completion date of 1 December 2022, meaning the applicable three-month time limit expired on 1 March 2023 (paras 8 to 9). The claim, made on 31 January 2025, was substantially late (para 21).
Applying the binding Upper Tribunal authority of Patel v Revenue and Customs Commissioners [2014] UKUT 361 (TCC), the Tribunal held that Regulation 201's requirements are mandatory and that neither HMRC nor the Tribunal has power to extend the time limit or waive the prescribed requirements (paras 24, 27). The Tribunal accepted it had jurisdiction to hear the appeal, but found it had no power to grant the relief sought, and therefore struck out the appeal under Rule 8(3)(c) as having no reasonable prospect of success (paras 27 to 29).
Background
Mr Paul McGuire submitted a claim under the DIY Housebuilders' Scheme on 31 January 2025 seeking repayment of VAT of £43,912.41 incurred in constructing a dwelling at Upper Malone Road, Belfast (para 2).
HMRC rejected the claim on the basis that it was submitted outside the time limit prescribed by Regulation 201 of the Value Added Tax Regulations 1995, and this decision was upheld following a statutory review by letter dated 8 October 2025 (para 3).
In his Notice of Appeal, Mr McGuire acknowledged the claim was late but attributed the delay to exceptional personal circumstances, namely a catastrophic accident suffered by his wife on 30 May 2022 when a large metal gate fell on her, causing serious injuries and prolonged rehabilitation. He asked the Tribunal to allow an extension of time and direct HMRC to process the claim (para 4).
The dwelling was completed on 1 December 2022, meaning the applicable time limit under Regulation 201 (three months, as the six-month extension applied only to buildings completed on or after 5 December 2023) expired on 1 March 2023 (paras 8 to 9).
Core dispute
HMRC applied to strike out the appeal under Rule 8 of the Tribunal Rules on two grounds: first, that the Tribunal lacked jurisdiction, and secondly, in the alternative, that the appeal had no reasonable prospect of success (paras 5, 20).
The central legal question was whether the Tribunal had any power to extend the statutory time limit under Regulation 201 or to direct HMRC to accept a late claim, given the exceptional personal circumstances relied upon by Mr McGuire (paras 23 to 24).
Mr McGuire relied on DDK Projects Ltd v HMRC [2025] UKFTT 1251 (TC) in support of his position, while the Tribunal considered the effect of Patel v Revenue and Customs Commissioners [2014] UKUT 361 (TCC) and Dunbar v HMRC [2019] UKFTT 747 (TC) (paras 11 to 19).
Court findings
The Tribunal accepted, for the purposes of the application, that Mrs McGuire had suffered serious injuries in May 2022 with significant impact on the family, but found that the appeal turned on a question of law rather than fact (paras 22 to 23).
The Tribunal held that Patel was binding authority establishing that the requirements of Regulation 201 are mandatory, and that the Tribunal has no power to extend the statutory time limit or waive the prescribed requirements (para 24).
The Tribunal found that DDK did not assist Mr McGuire because it concerned a statutory reasonable-excuse defence to penalties under Schedule 26 Finance Act 2021, not section 35 VATA, Regulation 201, or the DIY Housebuilders' Scheme (paras 18 to 19, 25).
The Tribunal also found that Dunbar did not assist Mr McGuire, since although it expressed reservations about aspects of Patel's reasoning, it expressly recognised that it was bound by Patel and accepted that any discretion, if it existed, belonged to HMRC rather than the Tribunal (paras 15 to 17, 26).
The Tribunal rejected HMRC's submission that it lacked jurisdiction, holding that it does have jurisdiction to determine appeals against HMRC decisions concerning claims under section 35 VATA, but that it has no power to grant the relief sought by Mr McGuire (para 27).
Outcome
HMRC's application was granted. The appeal was struck out pursuant to Rule 8(3)(c) of the Tribunal Rules on the basis that it had no reasonable prospect of success (paras 28 to 29).
Major issues / areas of contention
- Whether the Tribunal has jurisdiction to hear an appeal against HMRC's refusal of a DIY Housebuilders' Scheme claim submitted outside the time limit in Regulation 201.
- Whether the Tribunal or HMRC has any discretion to extend the statutory three-month time limit under Regulation 201 for making a DIY Housebuilders' Scheme claim.
- Whether exceptional personal circumstances can justify an extension of the statutory time limit.
- Whether the appeal had a reasonable prospect of success such that it should be struck out under Rule 8(3)(c) of the Tribunal Rules.
- The applicability of Patel, Dunbar and DDK to the question of extending time limits under Regulation 201.