GE Hayhurst and J Hayhurst Partnership and others v HMRC

In GE Hayhurst and J Hayhurst Partnership and others v HMRC [2018] UKFTT 265 (11 May 2018) the FTT found that ignorance of the fact that the new penalty regime (FA 2009 s 55) does not include a cap was a reasonable excuse for the late filing of returns.

The appellants traded together in a farming partnership and had filed both individual and partnership returns which for the years 2005/06 to 2009/10 were all delivered late. Penalties were issued as a result (TMA 1970 s 93(7) up to 2009/10 and FA 2009 s 55 for 2010/11 and 2011/12). The issue was whether the appellants had a reasonable excuse for the late filing.

The FTT noted that lack of funds was not a reasonable excuse. It also found that the appellants’ postal problems were not a reasonable excuse as they were aware of the penalties. Furthermore they...