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The taxpayer had appointed an accountant to handle his tax return. The accountant, who was a sole practitioner with no employees, did not submit the document on time; HMRC issued late-filing penalties.
The taxpayer appealed, claiming reasonable excuse on the basis his accountant was unable to complete the return because of ill health.
The First-tier Tribunal judge said the accountant had been acting as a functionary, rather than in a professional advisory capacity. The taxpayer should have made alternative arrangements for the return to be completed if the accountant was unable to deal with the matter.
Had the taxpayer been relying on professional advice, with no reason to believe it was wrong, the conclusion would usually be that the taxpayer had not acted negligently. This was not the case in this instance.
The taxpayer’s appeal was dismissed.
