Judicial review proceedings were unnecessary

In March 2019 HMRC issued M Sport a follower notice and an accelerated payment notice. In April the taxpayer made written representations on the grounds that the notices had not been issued within the time limits.

On 18 June the taxpayer applied for judicial review to challenge the notices having in May sent a pre-action protocol letter setting out the grounds. HMRC responded to that in early June. Then on 1 July it informed the taxpayer it had withdrawn both notices because the follower notices had not been issued in time. It said the taxpayer had acted prematurely in instigating judicial review proceedings and that it should pay HMRC’s costs.

The taxpayer argued that since HMRC had withdrawn the notices it should pay the costs of the taxpayer’s judicial review application.

The matter proceeded to the High Court which ruled against...