Personal problems are not a reasonable excuse

The taxpayer who ran a care home and assisted living business submitted his 2014-15 tax return on 13 September 2018. This was more than two years and seven months after the due date of 31 January 2016. HMRC imposed late filing penalties. The First-tier Tribunal dismissed his appeal.

The Upper Tribunal noted that the First-tier Tribunal accepted that the taxpayer had been through several distressing events and crises. It was also acknowledged that Mr Harrison’s business faced financial difficulties during 2015 to 2018.

However despite these problems the First-tier Tribunal had concluded that the taxpayer was for at least some of the time and certainly from September 2017 capable of managing his business affairs so that while some delay in submitting his return was ‘understandable’ the total delay was not reasonable.

The Upper Tribunal said the First-tier Tribunal had not erred in law in reaching...