Buteux v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2020] UKFTT 236 (TC) (21 May 2020)

Buteux v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2020] UKFTT 236 (TC) (21 May 2020)

The appellant did not have a reasonable excuse for late payment as statutory deadlines are clear and the taxpayer is responsible for compliance. However, due to errors and lack of clarity from HMRC, special circumstances justified a 50% reduction in the penalty.

Citation
[2020] UKFTT 236 (TC)
Parties
Appellant: Colm Buteux; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 May 2020
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal Determination Without Hearing
Outcome
Appeal allowed in part
Legal Topics
Income Tax, Late Payment Penalty, Reasonable Excuse, Special Circumstances, Self Assessment
Tax Law Income Tax Late Payment Penalty Reasonable Excuse Special Circumstances Self Assessment

Case Brief

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Parties

Colm Buteux

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Penalty Appeal / First Tier Tribunal Determination Without Hearing

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of tax for the period ending 5 April 2018
  2. 2 Whether the penalty should be reduced due to special circumstances

Ratio Decidendi

The appellant did not have a reasonable excuse for late payment as statutory deadlines are clear and the taxpayer is responsible for compliance. However, due to errors and lack of clarity from HMRC, special circumstances justified a 50% reduction in the penalty.

Court Disposition

Appeal allowed in part

Orders

  • Penalty reduced by 50% from £108.00 to £54.00