V5.485 Costs allowed and disallowed

Part V5 Compliance, enforcement and appeals

V5.485 Costs allowed and disallowed

V5.485 Costs allowed and disallowed

A tribunal can award costs of and incidental to all proceedings in the First-tier Tribunal and all proceedings in the Upper Tribunal1. Prior to 1 April 2009, the reference was to costs 'of and incidental to and consequent upon the appeal or application'2. Matters which have, or have not, been held to fall within this description are considered below.

Accounting records

Costs incurred by a qualified accountant in checking figures previously prepared by an unqualified accountant have been allowed3. However, the cost of correcting deficient accounting records has been disallowed where this work should have been performed in the course of furnishing returns4.


Costs relating to obtaining an extension of time for appeal have been wholly disallowed as being incurred through neglect of the applicant5.

Costs relating to an application for postponement of a hearing have been wholly disallowed as being solely for the convenience of the applicant6.

Bill of costs

In principle, it appears that the cost of preparing an itemised bill of costs should be allowed7. However, costs have been disallowed where an accountant was unable to provide an accurately itemised bill, and a great deal of time and effort was required to reduce the approximately itemised bill submitted8. In Security Despatch9, costs were allowed on an indemnity basis where HMRC had required an itemised bill of costs before making a decision in principle as to whether they were prepared to pay costs.

Litigant in person

The Litigants in Person (Costs and Expenses) Act 1975, s 1(1)

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