We now have the first SAO main duty judgment and what have we learned? At first sight, there is a lot here for SAOs to be comforted by: the decision reflects a proportionate sense of reasonable steps; and an expectation of fairness in HMRC’s own procedures when pursuing such a penalty. However, looking into the detail there are notes of caution, particularly for FDs of larger groups. The judge’s comments confirm the expectation that organisations will not only have the right policies, controls and people to operate them but will also have an appropriately sophisticated programme of testing.
