Strauss Phillips & Co Ltd v The Commissioners for HMRC

Facts

Strauss Phillips & Co Ltd, a firm of accountants, represented Gary Elden in his appeal to the First-tier Tribunal (Tax Chamber) against closure notices issued by HMRC on 15 February 2021 under section 28A(1B) and (2) of the Taxes Management Act 1970 for the tax years 2013-14 and 2014-15. HMRC applied to strike the appeal out under rule 8(3)(b) of the Tribunal Procedure (First-tier Tribunal)(Tax Chamber) Rules 2020. In its decision of 8 January 2026 the FTT refused that application, which was never appealed, but criticised the firm's conduct of the appeal, including a skeleton argument containing case summaries it found had been produced using artificial intelligence and not properly verified. HMRC then applied for costs. In a decision released on 15 April 2026 and determined on the papers, the FTT refused costs against Mr Elden but ordered the firm to pay HMRC £13,068.42. That sum comprised wasted costs under rule 10(1)(a) of the FTT Rules and costs for unreasonable conduct under rule 10(1)(b) of the FTT Rules. The FTT refused permission to appeal on 2 July 2026, and the firm renewed its application to the Upper Tribunal on 10 July 2026. Judge Rupert Jones refused permission on the papers on 24 August 2026 on eight grounds, and the firm renewed the application for an oral hearing on the same eight grounds.