Reasonable behaviour

Late filing penalties

The taxpayer failed to provide his information for his 2013-14 tax return to his accountant until June 2015 although he paid the tax due on time – by 31 January 2015. The return was submitted in October by which time HMRC had issued late filing penalties including daily penalties.

The taxpayer appealed saying the delay in providing information had been caused by marriage problems and resultant ill health.

The First-tier Tribunal found that the taxpayer’s personal difficulties and illness constituted a reasonable excuse for the delay in providing the return material. Further having provided that he had contacted his accountant several times to seek assurance the return would be filed. He had been promised the return would be submitted by 31 July and so made no more contact with the agent on that understanding.

The judge decided the taxpayer had been ‘proactive and...