HMRC filed notices of assessment against Ark Angel Limited under paragraph 9 of Schedule 16 Finance Act 2020 (FA 2020) for £59,664.54 for the 2020-21 tax year and £16,000 for the 2021-22 tax year.

Despite a late submission from HMRC to the First Tier Tribunal (FTT), which filed papers two days late, the hearing went ahead.

Ark Angel, the appellant appealed against two assessments made by HMRC related to money owed from coronavirus job retention scheme (CJRS) for two employees.

Two employees were furloughed on 17 April 2020, but both individuals began to work for a company linked to the appellant in December 2020, incurring an income tax liability from Ark Angel.