Robinson v Revenue & Customs (Value Added Tax - withdrawal of cash basis) [2020] UKFTT 477 (TC)) (24 November 2020)

Robinson v Revenue & Customs (Value Added Tax - withdrawal of cash basis) [2020] UKFTT 477 (TC)) (24 November 2020)

Mr Robinson genuinely believed he had permission to continue using the cash accounting basis for a transitional period; HMRC failed to prove deliberate inaccuracy, so no penalty or personal liability notice is due.

Citation
[2020] UKFTT 477 (TC)
Parties
Appellant: Michael Robinson; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
24 November 2020
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal allowed
Legal Topics
Value Added Tax, Cash Accounting Scheme, Personal Liability Notice, Penalties for Deliberate Inaccuracy
Tax Law Value Added Tax Cash Accounting Scheme Personal Liability Notice Penalties for Deliberate Inaccuracy

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Parties

Michael Robinson

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether the appellant's continued use of the cash accounting basis for VAT after HMRC withdrew permission constituted a deliberate inaccuracy justifying a personal liability notice and penalty

Ratio Decidendi

Mr Robinson genuinely believed he had permission to continue using the cash accounting basis for a transitional period; HMRC failed to prove deliberate inaccuracy, so no penalty or personal liability notice is due.

Court Disposition

Appeal allowed

Orders

  • Personal liability notice and penalty against Mr Robinson are set aside