Fitzpatrick Scaffolding Ltd v Revenue & Customs [2013] UKFTT 702 (TC) (26 November 2013)

Fitzpatrick Scaffolding Ltd v Revenue & Customs [2013] UKFTT 702 (TC) (26 November 2013)

The Tribunal held that insufficiency of funds due to general adverse economic conditions does not constitute a reasonable excuse under Schedule 56 FA 2009. There were no exceptional or unforeseen events specific to the appellant. Lack of specific warning or awareness of the penalty regime is not a reasonable excuse or special circumstance. The penalty was correctly calculated and not disproportionate. The appeal was dismissed and the penalty confirmed.

Citation
[2013] UKFTT 702
Parties
Appellant: Fitzpatrick Scaffolding Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 November 2013
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
PAYE Penalties, National Insurance Contributions, Finance Act 2009 Schedule 56, Reasonable Excuse, Special Circumstances, Proportionality of Penalty
Tax Law PAYE Penalties National Insurance Contributions Finance Act 2009 Schedule 56 Reasonable Excuse Special Circumstances Proportionality of Penalty

Case Brief

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Parties

Fitzpatrick Scaffolding Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether insufficiency of funds constitutes a reasonable excuse for late payment of PAYE and NICs under Schedule 56 FA 2009
  2. 2 Whether lack of specific warning by HMRC is a reasonable excuse
  3. 3 Whether any special circumstances existed to justify a reduction in the penalty amount

Ratio Decidendi

The Tribunal held that insufficiency of funds due to general adverse economic conditions does not constitute a reasonable excuse under Schedule 56 FA 2009. There were no exceptional or unforeseen events specific to the appellant. Lack of specific warning or awareness of the penalty regime is not a reasonable excuse or special circumstance. The penalty was correctly calculated and not disproportionate. The appeal was dismissed and the penalty confirmed.

Court Disposition

Appeal dismissed

Orders

  • Penalty of £3,064.82 confirmed against the appellant