Neal Futcher v The Commissioners for HMRC
Decision date: 3 November 2022
Neutral citation: [2022] UKFTT 401 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned a Schedule 55 penalty of £51,324.23 for filing the 2015/16 self-assessment return 927 days late. The tribunal found Mr Futcher deliberately withheld information by consciously deciding not to file by 31 January 2017, had no reasonable excuse at the filing date, and although HMRC’s special-circumstances consideration was procedurally flawed, no special circumstances justified reducing the penalty. The appeal was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: low
The tribunal’s ratio is that deliberate withholding under paragraph 6 Schedule 55 can be established by a conscious decision not to file a return at the filing date, even if later events intervene; and that the question of reasonable excuse must be assessed by reference to the circumstances existing at the filing date (post-filing events do not generally found a reasonable excuse).
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment contains observations that even if deliberate withholding required continuance throughout the 12-month period, evidence showed the taxpayer remained capable of decision-making and aware of obligations; and that mental health or later business difficulties might, in some cases, qualify as special circumstances relevant to reduction but must be connected to the penalty facts. These remarks are ancillary to the decision.
Warning
Chunk includes substantial repetition and duplication of passages. Notes include substantial repetition and duplication and may be materially incomplete.