Sirimi Salons v HMRC

Cathya Djanogly

In Sirimi Salons v HMRC [2016] UKFTT 724 (26 October 2016) the FTT found that the departure of a director did not constitute a reasonable excuse for late compliance but suggested that it may have been possible to establish a reasonable excuse in these circumstances.

Sirimi Salons was a hairdressing and beauty treatment company. Its three directors divided the administration of the business between them. One of them Mr Boast was responsible for accounts and staff issues including VAT compliance. He kept the VAT files at his home. He left the business in March 2014. A bookkeeper was eventually appointed but Sirimi Salons was late in filing its VAT returns and paying its VAT.

The issue was whether the departure of the director constituted a reasonable excuse. The FTT found that there was no reasonable excuse for the period ending 06/14. In the five months between...

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