Tomi’s Restaurant Limited & Anor v The Commissioners for HMRC

Facts

Tomi's Restaurant Limited, a family-run restaurant which has traded for many years, and Mr Richard Odiase applied to the First-tier Tribunal for permission to bring out-of-time appeals against three sets of HMRC decisions: discovery assessments to additional corporation tax issued under paragraph 41 of Schedule 18 to the Finance Act 1998 for the accounting periods ending 31 March 2012 to 31 March 2020, totalling £285,034.93; assessments in respect of the loans to participators charge under section 455 of the Corporation Tax Act 2010 and paragraph 41 of Schedule 18 to the Finance Act 1998 for the same periods, totalling £196,364.11; and penalties for inaccuracies in the company's corporation tax returns under Schedule 24 to the Finance Act 2007, totalling £313,547.37. Mr Odiase was issued with a personal liability notice for 50% of the penalties, £156,773.68, under paragraph 19(1) of Schedule 24 to the Finance Act 2007 on 11 July 2024. Following view of the matter letters of 26 July 2024 and 6 December 2024, no review was requested from the appropriate HMRC team and no appeal was notified to the Tribunal; instead the company's accountants, Isaac & Company, continued corresponding with the decision-maker. Solicitors were instructed on or about 20 August 2025 after a winding-up petition came to light, and the appeals were lodged on 7 October 2025.