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Angela Spence (TC5256)
Reasonable excuse for late VAT returns and payments
A solicitor incurred default surcharges of £4 185 because she had not read letters from HMRC telling her that she had been taken out of the annual accounting VAT scheme and had to file quarterly returns.
HMRC sent the taxpayer the surcharge notices but it was not until January 2014 when her accountant contacted her that she realised the problem. She then instructed her accountant to file the outstanding returns.
HMRC imposed surcharges against which the taxpayer appealed. She said she had not received the letter from HMRC informing her she had to complete quarterly returns.
The First-tier Tribunal accepted that she had not received the letter and said this would constitute a reasonable excuse for some of the late payments particularly because a subsequent letter from HMRC stated the taxpayer was on the annual accounting scheme.
However she...
