Anthony Leachman t/a Whiteley and Leachman v Her Majesty's Revenue & Customs
Decision date: 19 April 2011
Neutral citation: [2011] UKFTT 261 (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 challenged a £400 penalty for late filing a P35; the appellant conceded the facts but relied on a "reasonable excuse" of a genuine mistake that he believed his accountant would file the return. The tribunal held that a genuine mistake of fact can amount to a reasonable excuse and, on the evidence, accepted that the appellant genuinely held that mistaken belief. The penalty was therefore disallowed.
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: high
A genuine mistake of fact is legally capable of constituting a "reasonable excuse" for late filing of statutory returns, and where a penalty is imposed the revenue must satisfy the tribunal that no qualifying mistake of fact existed.
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 noted a distinction between a genuine mutual mistake that may excuse non-compliance and a case where a taxpayer simply relies on an agent who then neglects to act; the two situations may require different considerations.