Lau v Revenue & Customs [2011] UKFTT 560 (TC) (22 August 2011)

Lau v Revenue & Customs [2011] UKFTT 560 (TC) (22 August 2011)

Reliance on an accountant for filing a P35 return does not, in itself, amount to a reasonable excuse for late filing under s.118(2) of the TMA, especially where the task does not require specialist expertise and there is insufficient evidence that all reasonable efforts were made to comply.

Citation
[2011] UKFTT 560 (TC)
Parties
Appellant: Kalong Lau; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 August 2011
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Determination Without Hearing
Outcome
Appeal dismissed; penalty confirmed.
Legal Topics
Income Tax, Corporation Tax, Penalties, Late Filing, Reasonable Excuse
Tax Law Income Tax Corporation Tax Penalties Late Filing Reasonable Excuse

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Parties

Kalong Lau

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Determination Without Hearing

Legal Issues

  1. 1 Whether reliance on an accountant constitutes a reasonable excuse for late filing of a P35 employer’s annual return under s.118(2) of the Taxes Management Act 1970
  2. 2 Whether the circumstances of the accountant’s employee amount to a reasonable excuse

Ratio Decidendi

Reliance on an accountant for filing a P35 return does not, in itself, amount to a reasonable excuse for late filing under s.118(2) of the TMA, especially where the task does not require specialist expertise and there is insufficient evidence that all reasonable efforts were made to comply.

Court Disposition

Appeal dismissed; penalty confirmed.

Orders

  • The £400 penalty for late filing of the P35 return is upheld.