Matthew Atkin v The Commissioners for HMRC
[2024] UKFTT 786 (TC)
Neal Futcher v The Commissioners for HMRC
3 November 2022
[2022] UKFTT 401 (TC)
First-tier Tribunal
Mr. Futcher's tax return was very late. He said he was too busy with his business and had mental health problems. The judge felt sorry for him, but because he *deliberately* didn't file on time, he had to pay a big penalty, even though the judge thought the tax office messed up some of the paperwork.
Key Facts
- •Mr. Neal Futcher's 2015/16 self-assessment tax return was due on 31 January 2017 but filed on 16 August 2019.
- •HMRC imposed a tax-geared penalty of £51,324.23 under Schedule 55 of the Finance Act 2009.
- •Mr. Futcher claimed a reasonable excuse for the late filing due to severe business problems and mental health issues.
- •HMRC argued the late filing was deliberate and no reasonable excuse or special circumstances existed.
Legal Principles
Penalty regime for late filing of tax returns.
Schedule 55, Finance Act 2009
Reasonable excuse for late filing.
Schedule 55, Finance Act 2009, paragraph 23
Special circumstances for penalty reduction.
Schedule 55, Finance Act 2009, paragraph 16
Tribunal's power to substitute HMRC's decision.
Schedule 55, Finance Act 2009, paragraph 22
Definition of 'deliberate' in tax penalty context.
Clynes v HMRC [2016] UKFTT 0369 (TC) and McCabe v HMRC [2019] UKFTT 0269 (TC)
Approach to considering a 'reasonable excuse'.
Christine Perrin v HMRC [2018] UKUT 0156 (TCC)
Reasonable excuse must be based on circumstances at the filing date.
Matthew Harrison v HMRC [2022] UKUT 00216 (TCC)
Standard of review for HMRC's special circumstances decision.
Associated Provincial Picture Houses Limited v Wednesbury Corporation [1947] 2 All ER 680
Outcomes
Appeal dismissed.
Mr. Futcher's late filing was a deliberate act; he had no reasonable excuse; although HMRC's decision on special circumstances was flawed, no special circumstances justified a penalty reduction.