Cruise v Revenue & Customs (Income tax - fixed and daily penalties for late filing of self assessment return) [2023] UKFTT 41 (TC) (11 January 2023)

Cruise v Revenue & Customs (Income tax - fixed and daily penalties for late filing of self assessment return) [2023] UKFTT 41 (TC) (11 January 2023)

The appellant had registered for HMRC’s online services and did not de-register or update his details; notices and penalty assessments were properly issued electronically and read. Failure to check the online account or confusion between personal and company tax obligations does not constitute a reasonable excuse. Reliance on an accountant is not a reasonable excuse without evidence of reasonable care. HMRC’s refusal to reduce penalties for special circumstances was not unreasonable. The penalties were properly imposed.

Citation
[2023] UKFTT 41 (TC)
Parties
Appellant: Thomas Cruise; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 January 2023
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Late Filing Penalties, Reasonable Excuse, Electronic Communications, Special Circumstances
Tax Law Income Tax Self Assessment Late Filing Penalties Reasonable Excuse Electronic Communications Special Circumstances

Case Brief

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Parties

Thomas Cruise

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether penalties for late filing of self-assessment tax return were properly imposed
  2. 2 Whether the appellant had a reasonable excuse for late filing
  3. 3 Whether HMRC's refusal to reduce penalties for special circumstances was unreasonable

Ratio Decidendi

The appellant had registered for HMRC’s online services and did not de-register or update his details; notices and penalty assessments were properly issued electronically and read. Failure to check the online account or confusion between personal and company tax obligations does not constitute a reasonable excuse. Reliance on an accountant is not a reasonable excuse without evidence of reasonable care. HMRC’s refusal to reduce penalties for special circumstances was not unreasonable. The penalties were properly imposed.

Court Disposition

Appeal dismissed

Orders

  • Penalties upheld; no reduction or cancellation.