Butterworth v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 521 (TC) (29 August 2018)

Butterworth v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 521 (TC) (29 August 2018)

The appeal is upheld in part because the £900 daily penalty under paragraph 4 for the 2014/15 tax year was not properly notified, failing statutory requirements. All other penalties were properly imposed, notices were received and complied with statutory requirements, HMRC acted within powers, tax repayment did not constitute special circumstances, and appellant had no reasonable excuse.

Citation
[2018] UKFTT 521 (TC)
Parties
Appellant: Mark Butterworth; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
29 August 2018
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax) Final Determination
Outcome
Appeal upheld in part, dismissed in part
Legal Topics
Income Tax, Self Assessment, Penalties, Reasonable Excuse, Special Circumstances
Tax Law Income Tax Self Assessment Penalties Reasonable Excuse Special Circumstances

Case Brief

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Parties

Mark Butterworth

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Penalty Appeal / First Tier Tribunal (tax) Final Determination

Legal Issues

  1. 1 Whether penalties under Schedule 55 Finance Act 2009 were properly determined in light of paragraph 17(3)
  2. 2 Whether penalty notices were received and complied with statutory requirements
  3. 3 Whether HMRC exceeded powers in requiring returns to be filed

Ratio Decidendi

The appeal is upheld in part because the £900 daily penalty under paragraph 4 for the 2014/15 tax year was not properly notified, failing statutory requirements. All other penalties were properly imposed, notices were received and complied with statutory requirements, HMRC acted within powers, tax repayment did not constitute special circumstances, and appellant had no reasonable excuse.

Court Disposition

Appeal upheld in part, dismissed in part

Orders

  • £900 penalty under paragraph 4 Schedule 55 for 2014/15 tax year is discharged
  • All other penalties under Schedule 55 are upheld