Reasonable excuse: N Futcher v HMRC [2022] UKFTT 401 (TC) (3 November 2022) makes rather sad reading. The appeal was against a late return penalty: not the standard penalty for late submission of a self-assessment return but the much higher penalty which can be charged where a person deliberately withholds information which would enable HMRC to make an assessment. The taxpayer gave evidence before the FTT of the severe problems which his business faced and of the very serious health issues he suffered. The tribunal commented no one who listened to the taxpayer giving evidence could feel anything other than the greatest sympathy for the situation in which he currently finds himself. Nevertheless on the facts the taxpayer had deliberately not submitted his return and he did not have a reasonable excuse for the entire period of default. The taxpayer’s health and business problems started after the due...
