27 August 2024
HMRC v Payroll & Pension Services (PPS Umbrella Company) Limited [2024] EWCA Civ 995
The Court of Appeal has considered whether HMRC are required to give a cross-undertaking in damages when they present a winding-up petition and apply without notice for the appointment of provisional liquidators. The Court has held that such proceedings are not public law enforcement proceedings and the High Court had been right to insist on the provision of a cross-undertaking in damages from HMRC. As held by Lewison LJ:
“Departure from the well-established practice of requiring a cross-undertaking in damages on the appointment of a provisional liquidator where the applicant is HMRC seeking to recover unpaid tax would…confer on HMRC an entirely unwarranted public interest immunity for the consequences of unjustified initiation of such proceedings; and would encourage indiscriminate initiation of proceedings at the unjustifiable expense of an individual.”
Ben Elliott acted for the taxpayer company.
You can find a copy of the judgment here.
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