In Michael Phair v HMRC TC02752 [2013] the taxpayer's case the first tier tax tribunal was assigned to the complex track. His advisers misunderstood the costs rules and so landing him with HMRC's costs after an unsuccesful appeal.

The taxpayer's case concerned income tax on options which were employment related securities. His agents received a letter concerning costs, and failed to act on it. As a result the taxpayer was unable to opt out of a costs order.

In this situation the taxpayer is liable for HMRC's costs and will have to seek recompense from his agents.

Links: TC02752