Wals v Revenue and Customs (INCOME TAX - penalties for late filing - reliance on chartered accountant - appellant aware of late filing penalties - reasonable excuse or special circumstances) [2025] UKFTT 1331 (TC) (11 November 2025)

Wals v Revenue and Customs (INCOME TAX - penalties for late filing - reliance on chartered accountant - appellant aware of late filing penalties - reasonable excuse or special circumstances) [2025] UKFTT 1331 (TC) (11 November 2025)

The appellant had a reasonable excuse for the 2010/2011 late filing penalty as he took reasonable care by appointing a chartered accountant and providing timely information, but once he was on notice of agent failures, he did not take further reasonable care for subsequent years. Reliance on an agent is not a reasonable excuse unless reasonable care is shown. No special circumstances were found to justify reduction of other penalties.

Citation
[2025] UKFTT 1331
Parties
Appellant: Gerrit Wals; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 November 2025
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed in part; £100 penalty for 2010/2011 set aside, all other penalties upheld.
Legal Topics
Income Tax, Penalties, Late Filing, Reasonable Excuse, Special Circumstances, Reliance on Agent
Tax Law Income Tax Penalties Late Filing Reasonable Excuse Special Circumstances Reliance on Agent

Case Brief

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Parties

Gerrit Wals

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late filing of tax returns under Schedule 55 Finance Act 2009
  2. 2 Whether there were special circumstances justifying reduction of penalties

Ratio Decidendi

The appellant had a reasonable excuse for the 2010/2011 late filing penalty as he took reasonable care by appointing a chartered accountant and providing timely information, but once he was on notice of agent failures, he did not take further reasonable care for subsequent years. Reliance on an agent is not a reasonable excuse unless reasonable care is shown. No special circumstances were found to justify reduction of other penalties.

Court Disposition

Appeal allowed in part; £100 penalty for 2010/2011 set aside, all other penalties upheld.

Orders

  • Appeal against £100 penalty for 2010/2011 allowed; penalty set aside.
  • Appeal against all other penalties dismissed.