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The taxpayer appealed against fixed and daily penalties imposed under FA 1998, Sch 18 para 29 for failing to comply with notices from HMRC requiring certain information.
The facts were that HMRC enquired into the taxpayer’s tax returns, copying in the acting accountant. After speaking to the accountant, HMRC agreed to extend the deadline in view of the accountant’s heavy workload.
However, the information was still not sent on time, so the department imposed penalties. The taxpayer appealed, saying that the accountant’s overwhelming workload constituted reasonable excuse.
The First-tier Tribunal agreed that reliance on a third party could be a reasonable excuse for direct tax.
However, in this instance, the information required was straightforward, and the taxpayer could have provided it, rather than relying on its accountant.
The appeal was dismissed and the penalties confirmed.
