Careless conduct and professional advice

‘There are few who would gainsay the proposition that tax law can be complicated and difficult for taxpayers to understand and thus it is only to be expected that from time to time taxpayers will resort to professional advice …. We consider it difficult to understand how a taxpayer can be negligent if perceiving the need for professional advice on a matter of difficulty or in a situation where the taxpayer is in doubt as to the proper approach to be taken he then seeks and relies upon properly considered professional advice…’ said the First -tier Tribunal (FTT) in Cannon (TC6254).

Careless conduct exposes a taxpayer to a number of risks. HMRC may have a longer period in which to enquire into that person’s affairs. Underpayment of tax may result in higher penalties. As a general rule a taxpayer who consults an...