Kog v Revenue and Customs (VAT - option to tax - whether made - company failure to account for output tax on rent and proceeds of sale - company penalty due to deliberate inaccuracy by the appellant - PLN issued to appellant - direct knowledge of option - blind eye knowledge) [2026] UKFTT 40 (TC) (08 January 2026)

Kog v Revenue and Customs (VAT - option to tax - whether made - company failure to account for output tax on rent and proceeds of sale - company penalty due to deliberate inaccuracy by the appellant - PLN issued to appellant - direct knowledge of option - blind eye knowledge) [2026] UKFTT 40 (TC) (08 January 2026)

The appellant did not have direct knowledge of the option to tax at the time of filing the VAT return but had blind eye knowledge, having reason to suspect the property was opted and deliberately failing to confirm with HMRC. This constitutes deliberate inaccuracy, justifying the personal liability notice.

Citation
[2026] UKFTT 40
Parties
Appellant: Akin Kog; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 January 2026
Procedural Posture
VAT Appeal Against Personal Liability Notice / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT, Option to Tax, Personal Liability Notice, Deliberate Inaccuracy, Blind Eye Knowledge, Company Director Liability
Tax Law VAT Option to Tax Personal Liability Notice Deliberate Inaccuracy Blind Eye Knowledge Company Director Liability

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Parties

Akin Kog

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Appeal Against Personal Liability Notice / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether the appellant is personally liable for a penalty due to deliberate inaccuracy in the company's VAT return regarding output tax on the sale of a property subject to an option to tax.

Ratio Decidendi

The appellant did not have direct knowledge of the option to tax at the time of filing the VAT return but had blind eye knowledge, having reason to suspect the property was opted and deliberately failing to confirm with HMRC. This constitutes deliberate inaccuracy, justifying the personal liability notice.

Court Disposition

Appeal dismissed

Orders

  • Personal liability notice in the amount of £38,749.73 upheld against the appellant.