In Megablue technologies Ltd (in liquidation) v HMRC [2022] UKFTT 24 (TC) (18 January 2022) the FTT dismissed the taxpayer's appeal. HMRC had not paid an R&D tax credit within the timescales set out in its guidance and the taxpayer company went into liquidation. HMRC then refused to pay the credit because the company was no longer a going concern. The FTT held that it had no jurisdiction to consider whether HMRC had acted unreasonably only whether the refusal to pay the credit was in accordance with the relevant legislation (which it was). There might possibility be grounds for judicial review but given that the guidance contained caveats ('we will aim to open an enquiry within 60 days') this was likely to be a difficult course of action for the liquidator to take and ultimately it had no legal power to...
