Coates v Revenue & Customs [2015] UKFTT 460 (TC) (16 September 2015)

Coates v Revenue & Customs [2015] UKFTT 460 (TC) (16 September 2015)

The appellant took reasonable care by engaging professional accountants to prepare the claim, providing them with necessary documents, and reasonably relying on their expertise. The inaccuracy resulted from an administrative error by the accountants, not from any lack of care by the appellant. Therefore, the penalty was not justified.

Citation
[2015] UKFTT 460
Parties
Appellant: Simon Coates; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
16 September 2015
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
VAT Penalties, DIY Builders Scheme, Reasonable Care, Administrative Error, Schedule 24 Finance Act 2007
Tax Law VAT Penalties DIY Builders Scheme Reasonable Care Administrative Error Schedule 24 Finance Act 2007

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Parties

Simon Coates

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the appellant took reasonable care to avoid inaccuracy in a VAT refund claim under the DIY Builders Scheme
  2. 2 Whether a penalty under Schedule 24 Finance Act 2007 was properly imposed

Ratio Decidendi

The appellant took reasonable care by engaging professional accountants to prepare the claim, providing them with necessary documents, and reasonably relying on their expertise. The inaccuracy resulted from an administrative error by the accountants, not from any lack of care by the appellant. Therefore, the penalty was not justified.

Court Disposition

Appeal allowed

Orders

  • HMRC's decision to impose a penalty is cancelled