BAKER v Revenue & Customs (INCOME TAX - Follower Notice - Penalty) [2024] UKFTT 126 (TC) (06 February 2024)

BAKER v Revenue & Customs (INCOME TAX - Follower Notice - Penalty) [2024] UKFTT 126 (TC) (06 February 2024)

It was objectively reasonable in all the circumstances for RB not to take corrective action by the due date, given his reliance on professional advice, HMRC's inconsistent and erroneous communications, and his lack of awareness that his appeal had been struck out. Therefore, no penalty is due.

Citation
[2024] UKFTT 126
Parties
Appellant: Roy Baker; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
06 February 2024
Procedural Posture
Income Tax Follower Notice Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Follower Notice, Penalty, Finance Act 2014, Reasonable Excuse, Corrective Action, Co Operation Reduction
Tax Law Income Tax Follower Notice Penalty Finance Act 2014 Reasonable Excuse Corrective Action Co Operation Reduction

Case Brief

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Parties

Roy Baker

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Follower Notice Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether the penalty for failure to take corrective action under a Follower Notice should be reduced from 42%
  2. 2 Whether it was reasonable in all the circumstances for the appellant not to have taken corrective action by the specified date
  3. 3 Whether the penalties were correctly calculated and notified

Ratio Decidendi

It was objectively reasonable in all the circumstances for RB not to take corrective action by the due date, given his reliance on professional advice, HMRC's inconsistent and erroneous communications, and his lack of awareness that his appeal had been struck out. Therefore, no penalty is due.

Court Disposition

Appeal allowed

Orders

  • Penalties cancelled
  • No penalty is due