Rich v Revenue & Customs [2011] UKFTT 533 (TC) (08 August 2011)

Rich v Revenue & Customs [2011] UKFTT 533 (TC) (08 August 2011)

Reliance on accountants to notify HMRC of chargeability and handle tax affairs can amount to a reasonable excuse for late payment of income tax, as there is no statutory provision precluding such reliance for income tax, and Mr Rich acted reasonably throughout.

Citation
[2011] UKFTT 533 (TC)
Parties
Appellant: Stephen Rich; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 August 2011
Procedural Posture
Income Tax Surcharge Appeal / First Tier Tribunal (tax), Paper Determination
Outcome
Appeal allowed
Legal Topics
Income Tax, Surcharge, Reasonable Excuse, Reliance on Accountants
Tax Law Income Tax Surcharge Reasonable Excuse Reliance on Accountants

Case Brief

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Parties

Stephen Rich

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Surcharge Appeal / First Tier Tribunal (tax), Paper Determination

Legal Issues

  1. 1 Whether reliance on accountants can amount to a reasonable excuse for late payment of income tax under section 59C Taxes Management Act 1970
  2. 2 Whether the surcharges for late payment should be set aside

Ratio Decidendi

Reliance on accountants to notify HMRC of chargeability and handle tax affairs can amount to a reasonable excuse for late payment of income tax, as there is no statutory provision precluding such reliance for income tax, and Mr Rich acted reasonably throughout.

Court Disposition

Appeal allowed

Orders

  • Surcharges for late payment of income tax for 2007/8 and 2008/9 set aside