Mr M R Brookes v Commissioners for Her Majesty's Revenue and Customs
Decision date: 11 March 2010
Neutral citation: [2010] UKFTT 112 (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 £400 penalty for filing a P35 four months late where the appellant's sole agent was hospitalised with throat cancer. The Tribunal found the agent’s illness did not amount to a “reasonable excuse,” that any reasonable excuse must exist for the whole period of default, and that delegation to an agent does not absolve the taxpayer of the filing obligation. The penalty was confirmed and the appeal 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: medium
The binding reasoning is that a taxpayer remains responsible for filing even if they delegate the task to an agent, and reliance on an agent’s incapacity does not automatically constitute a “reasonable excuse.” To succeed the taxpayer must show a reasonable excuse that was unforeseeable or beyond the control of taxpayer and agent and that persisted throughout the entire period of default.
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 Tribunal expressed sympathy for the agent’s serious illness and observed (not as a binding principle) that a sole-practitioner professional has a responsibility to organise contingency arrangements—such as engaging a locum—so as to avoid clients suffering late filing penalties.
Warning
Some repetition in the material.