Five Star (Development) Homes Ltd v Revenue and Customs (VAT - late filing of returns - penalty points and financial penalties - whether a reasonable excuse - third party software, reliance on an employee, insufficiency of funds) [2025] UKFTT 1255 (TC) (21 October 2025)

Five Star (Development) Homes Ltd v Revenue and Customs (VAT - late filing of returns - penalty points and financial penalties - whether a reasonable excuse - third party software, reliance on an employee, insufficiency of funds) [2025] UKFTT 1255 (TC) (21 October 2025)

The appellant failed to establish a reasonable excuse for late filing as reliance on a trainee or third party software, lack of funds, and ignorance of the issue do not meet the statutory or case law threshold. The MD was responsible for ensuring compliance and adequate supervision. The penalty notices were validly...

Source-derived case information.

Citation
[2025] UKFTT 1255
Parties
Appellant: Five Star (Development) Homes Limited; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
21 October 2025
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal, Decision on Papers
Outcome
Appeal dismissed
Legal Topics
VAT Penalties, Late Filing, Reasonable Excuse, Third Party Software, Employee Error, Insufficiency of Funds
Tax Law VAT Penalties Late Filing Reasonable Excuse Third Party Software Employee Error Insufficiency of Funds

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Parties

Five Star (Development) Homes Limited

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal, Decision on Papers

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late filing of VAT returns under Schedule 24 Finance Act 2021
  2. 2 Whether reliance on third party software or an employee constitutes a reasonable excuse
  3. 3 Whether financial hardship or lack of funds is a reasonable excuse

Ratio Decidendi

The appellant failed to establish a reasonable excuse for late filing as reliance on a trainee or third party software, lack of funds, and ignorance of the issue do not meet the statutory or case law threshold. The MD was responsible for ensuring compliance and adequate supervision. The penalty notices were validly issued and there were no special circumstances to reduce the penalties.

Court Disposition

Appeal dismissed

Orders

  • The penalty points and financial penalties are upheld.