Shortly before a 4-week trial was due to commence, HMRC conceded that the appeal of Ducas Ltd (part of the Maxipay group) should be allowed in full and the associated Freezing Orders discharged. HMRC are also to pay Ducas’ costs on the indemnity basis. There will also be an enquiry as to damages caused by the Freezing Orders.
The background to the appeal was that, in November 2024, HMRC issued Ducas with a £171m assessment under the agency legislation - the NICs equivalent of s. 44 ITEPA 2003. HMRC also obtained Freezing Orders against Ducas and other Maxipay companies on an ex parte (without notice) basis. HMRC also later brought proceedings against the Maxipay UBO and secured a Freezing Order on an ex parte basis - that claim has also been discontinued and the Freezing Order discharged.
Since November 2024, there have been numerous hearings in the High Court and the FTT in which we secured:
- the listing of a speedy trial;
- the continuation of a cross undertaking in damages on the Freezing Orders (which will now form the basis of the enquiry as to damages);
- a very favourable High Court costs decision after various interlocutory hearings in which the Judge praised the companies’ ‘mature’ and ‘sensible’ approach to the Freezing Orders (HMRC v Ducas Ltd and Others [2025] EWHC 226 (Ch) [2025] Costs L.R. 1095); and
- heightened disclosure from HMRC.
The team also successfully resisted an appeal by HMRC to the Upper Tribunal in relation to disclosure which resulted in HMRC being ordered to pay Ducas’ costs of that appeal (HMRC v Ducas Ltd [2025] UKUT 362 (TCC) [2025] S.T.C. 1843): https://assets.publishing.service.gov.uk/media/6903308692779f89baa51fc2/HMRC_v_Ducas_Ltd_-_Final_Decision_.pdf
Iain MacWhannell instructed David Bedenham KC and Chris Stone KC of Devereux Chambers.
Iain, David, and Chris were greatly assisted by the wider JHAB team which included Thomas Hemming, Julia Glukhikh, Jono Gould, Tessa Hocking, John Hayton, Charlotte Agnew-Harington and Seth Cumming.
