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22 July 2013
G Carter (TC2661)
The taxpayer was self-employed, trading as Cann Hall Garden Centre. He also had rental income.
HMRC carried out an enquiry into his 2003/04 return, and concluded he had been negligent in dealing with his tax affairs. The department issued assessments and a penalty – which could have been equivalent to the whole amount of underpaid tax but was abated by 60%.
The taxpayer appealed.
The First-tier Tribunal agreed the taxpayer had been negligent in respect of the garden centre business, but decided 85% of the maximum fine should be abated. The judge concluded the taxpayer was “disorganised” and had not been well served by his accountant.
The taxpayer’s appeal was allowed in part.
