Mr Craig Lawton (trading as C B Lawton Drywall and Plastering Contractors) v Commissioners for Her Majesty's Revenue and Customs
Decision date: 15 October 2010
Neutral citation: [2010] UKFTT 507 (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 late filing penalties under regulation 40A for contractor returns due 19 May 2006 and 19 May 2007, which were not received by HMRC until 3 July 2009. The tribunal found the appellant had no reasonable excuse (and, if any excuse existed, it ended on receipt of penalty notices) and confirmed penalties of £1,200 for 2005–06 and £558.86 for 2006–07, dismissing the appeal and upholding a total penalty of £1,758.86.
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
A contractor obliged by regulation 40A must file end-of-year returns by the statutory 44-day deadline regardless of whether HMRC issues forms or reminders; an appellant’s non-receipt of forms will not avoid liability, and receipt of a penalty notice indicating non-submission can mark the end of any reasonable excuse so that continued delay defeats protection under s.118(2) TMA.
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 indicated that errors in HMRC’s statement of case about the specific regulation do not necessarily prejudice an appellant where the true statutory basis is clear and addressed, and that statements made by HMRC after penalties are imposed do not of themselves suffice to set aside penalties.
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