Redman v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 714 (TC) (11 December 2018)

Redman v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 714 (TC) (11 December 2018)

Mr Redman and his agents were not notified by HMRC of his removal from the self-assessment system, and thus were unaware of the obligation to notify chargeability. This constituted a reasonable excuse, and the failure to notify was remedied without unreasonable delay once discovered. Therefore, no penalty was due for deliberate or careless failure to notify.

Citation
[2018] UKFTT 714
Parties
Appellant: Matthew Redman; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
11 December 2018
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Full Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Self Assessment, Penalty for Failure to Notify, Reasonable Excuse, Deliberate and Careless Conduct
Tax Law Income Tax Self Assessment Penalty for Failure to Notify Reasonable Excuse Deliberate and Careless Conduct

Case Brief

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Parties

Matthew Redman

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether Mr Redman deliberately or carelessly failed to notify chargeability to income tax for 2011-12 and 2012-13
  2. 2 Whether Mr Redman had a reasonable excuse for failure to notify

Ratio Decidendi

Mr Redman and his agents were not notified by HMRC of his removal from the self-assessment system, and thus were unaware of the obligation to notify chargeability. This constituted a reasonable excuse, and the failure to notify was remedied without unreasonable delay once discovered. Therefore, no penalty was due for deliberate or careless failure to notify.

Court Disposition

Appeal allowed

Orders

  • The penalties for failure to notify chargeability for 2011-12 and 2012-13 are cancelled.