Effect of divorce

Late submission of returns and payment of tax

The taxpayer filed her personal and partnership returns late. HMRC imposed penalties for late returns and late paid tax. She appealed arguing that her husband from whom she was separated had denied her access to the businesses’ accounting records and bank accounts.

The First-tier Tribunal agreed that she had a reasonable excuse for the partnership return. She was neither the nominated nor representative partner and had been excluded from the management and direction of the partnerships. It was reasonable for her to assume that the partnerships’ accountants would deal with the partners’ returns properly.

On her personal return the tribunal noted that she had previously relied on the partnerships’ accountants to file it on her behalf and accepted that she had not realised it had not been done until she was notified by HMRC. The tribunal described...