Mr Toby Turner v Commissioners for Her Majesty's Revenue and Customs
Decision date: 8 September 2010
Neutral citation: [2010] UKFTT 483 (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 22 late‑filing CIS penalties totalling £2,200 for monthly periods April–July 2009 and whether the appellant had a "reasonable excuse" under s.118(2) TMA. The tribunal found the returns were late, rejected ignorance of the obligation and reliance on an accountant as a general reasonable excuse, but accepted that HMRC’s delay in enabling online filing and subsequent procedural difficulties provided a reasonable excuse for specific September and October periods. The appeal was allowed in part and penalties were reduced by £800 to £1,400.
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
The tribunal held that: (1) ignorance of the obligation to submit CIS returns does not constitute a reasonable excuse under s.118(2) TMA; (2) reliance on incorrect advice from an accountant will not normally amount to a reasonable excuse absent evidence the matter was beyond the layperson’s capability; and (3) HMRC’s administrative delay or procedural actions can amount to a reasonable excuse where they make filing impossible or materially difficult.
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 appellant’s lack of intent to evade tax but noted such sympathy does not equate to a legal reasonable excuse; it also observed that HMRC might have been able to accept online returns on or soon after 6 October 2009 and that HMRC’s internal handling was inconsistent.