Overwhelming factors

Late file construction industry scheme returns

The taxpayer appealed against penalties imposed under FA 2009 Sch 55 for late construction industry scheme returns. The director said she had a reasonable excuse because she had just moved home and also had a baby. Her car her partner’s van and his tools were stolen. As a result he was unable to work and became depressed. Finally she was having problems with her accountant but she had since appointed a different one.

The First-tier Tribunal said ‘looking at all the factors in the round’ the taxpayer had a reasonable excuse. Each one in isolation might not have amounted to a reasonable excuse but the cumulative effect of them had ‘overwhelmed’ the director.

The judge added that reliance on an adviser would not usually constitute a reasonable excuse unless the taxpayer had taken action to solve the problem....