Old and forgetful

The taxpayer who was 77 years old was late in submitting his August 2013 VAT return and payment.

He explained to HMRC that his tardiness was an honest mistake caused by his age: he had a poor memory and thought the return was for September rather than August.

The Revenue argued that the taxpayer had a history of defaults. The late filing was not the result of a genuine error but because he had not taken measures to ensure his business met its VAT obligations.

The First-tier Tribunal said it is necessary to consider “the particular attributes of the taxpayer” when assessing whether there was a reasonable excuse. It was appropriate to take into account a person’s age and health.

The taxpayer in this instance was “elderly and prone to bouts of forgetfulness”. The tribunal judge said a mistake of fact could give rise to a reasonable excuse...