Midshire Decor Ltd v Revenue & Customs [2012] UKFTT 115 (TC) (01 February 2012)

Midshire Decor Ltd v Revenue & Customs [2012] UKFTT 115 (TC) (01 February 2012)

The appellant did not have a reasonable excuse for the late filing as the error was within its control and it failed to promptly address the issue after being notified of the failed filing. However, the tribunal found that HMRC's delay in notifying the appellant of the penalty was unreasonable, and therefore reduced the penalty from £800 to £400 as a just and fair outcome.

Citation
[2012] UKFTT 115 (TC)
Parties
Appellant: Midshire Décor Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
01 February 2012
Procedural Posture
Appeal / First Tier Tribunal Determination Without a Hearing
Outcome
Appeal allowed in part
Legal Topics
Income Tax, Corporation Tax, Employer's Return, Late Filing Penalty, Reasonable Excuse
Tax Law Income Tax Corporation Tax Employer's Return Late Filing Penalty Reasonable Excuse

Case Brief

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Parties

Midshire Décor Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal Determination Without a Hearing

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late filing of employer's return under s.118(2) TMA
  2. 2 Whether the penalty imposed should be reduced due to delay in notification by HMRC

Ratio Decidendi

The appellant did not have a reasonable excuse for the late filing as the error was within its control and it failed to promptly address the issue after being notified of the failed filing. However, the tribunal found that HMRC's delay in notifying the appellant of the penalty was unreasonable, and therefore reduced the penalty from £800 to £400 as a just and fair outcome.

Court Disposition

Appeal allowed in part

Orders

  • Penalty reduced from £800 to £400
  • No reasonable excuse established for late filing