Cafe View v Revenue & Customs [2011] UKFTT 809 (TC) (09 December 2011)

Cafe View v Revenue & Customs [2011] UKFTT 809 (TC) (09 December 2011)

The Tribunal found no reasonable excuse for the late filings but held that the penalties imposed were manifestly excessive given the circumstances, including the appellant's mistaken belief that the accountant was handling the returns and the lack of timely notification from HMRC. The Tribunal reduced the penalties to £100 per year.

Citation
[2011] UKFTT 809
Parties
Appellant: Cafe View; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 December 2011
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
Late Filing Penalties, Employer Annual Returns, Reasonable Excuse, Mitigation of Penalties
Tax Law Late Filing Penalties Employer Annual Returns Reasonable Excuse Mitigation of Penalties

Case Brief

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Parties

Cafe View

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether there was a reasonable excuse for late filing of P35 employer annual returns for 2008-09 and 2009-10
  2. 2 Whether the penalties imposed were manifestly excessive
  3. 3 Whether the Tribunal has power to mitigate penalties under section 98A(2)(a) Taxes Management Act 1970

Ratio Decidendi

The Tribunal found no reasonable excuse for the late filings but held that the penalties imposed were manifestly excessive given the circumstances, including the appellant's mistaken belief that the accountant was handling the returns and the lack of timely notification from HMRC. The Tribunal reduced the penalties to £100 per year.

Court Disposition

Appeal allowed in part

Orders

  • Penalty reduced to £100 for each tax year 2008-09 and 2009-10