Bromcom Computers PLC v Revenue & Customs (INCOME TAX/CORPORATION TAX : Employment income) [2015] UKFTT 537 (TC) (28 October 2015)

Bromcom Computers PLC v Revenue & Customs (INCOME TAX/CORPORATION TAX : Employment income) [2015] UKFTT 537 (TC) (28 October 2015)

The appellant's cash flow difficulties and issues with local authorities and Knowsley Council were of long standing and did not amount to a reasonable excuse for late payment. The winding up petition and Solicitors Office mistake did not provide a reasonable excuse as they post-dated the defaults or were not the underlying cause. HMRC's decision not to reduce penalties further for special circumstances was not flawed. Penalties are affirmed.

Citation
[2015] UKFTT 537 (TC)
Parties
Appellant: Bromcom Computers PLC; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 October 2015
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
PAYE Penalties, National Insurance Contributions, Reasonable Excuse, Special Circumstances, Schedule 56 FA 2009
Tax Law PAYE Penalties National Insurance Contributions Reasonable Excuse Special Circumstances Schedule 56 FA 2009

Case Brief

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Parties

Bromcom Computers PLC

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether alleged illegal action by public authorities or a mistake by HMRC constituted reasonable excuse or special circumstances for late payment penalties under Schedule 56 FA 2009

Ratio Decidendi

The appellant's cash flow difficulties and issues with local authorities and Knowsley Council were of long standing and did not amount to a reasonable excuse for late payment. The winding up petition and Solicitors Office mistake did not provide a reasonable excuse as they post-dated the defaults or were not the underlying cause. HMRC's decision not to reduce penalties further for special circumstances was not flawed. Penalties are affirmed.

Court Disposition

Appeal dismissed

Orders

  • HMRC’s decision to impose a total penalty of £7,884.82 is affirmed