Reasonable excuse claim fails

The taxpayer appealed against late filing penalties imposed for the late submission of his tax returns for 2015-16 2016-17 and 2017-18. He said he had severe mental health problems which arose in 2016 and let to him ‘burying his head in the sand’. His business was at its ‘maximum capacity’ but activity has since reduced adding to his health issues. He began attending to his tax affairs in late 2018 and did not argue that the returns were late. He did however argue that the penalties were severe given that his failure to file was not deliberate. In addition he had tried to bring his affairs up to date.

The First-tier Tribunal had several concerns about the appeal. First the taxpayer had not provided any medical evidence ‘whatsoever’ to prove his mental health problems. Nor had he given details of any treatment he had received...