Hadleigh Cohen v The Commissioners for HMRC
Decision date: 26 July 2024
Neutral citation: [2024] UKFTT 707 (TC)
Overall AI summary confidence: medium
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: medium
This case concerns a challenge to a Schedule 56 late payment penalty (5% of unpaid tax) imposed for tax due 31 January 2023. The tribunal admitted a late appeal and allowed the substantive appeal, finding the appellant was in default but had a reasonable excuse based on an objectively reasonable belief—supported by HMRC webchat guidance—that he had three months to file and pay. The penalty was set aside.
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 tribunal applied its s31A TMA discretion to admit a late appeal where there was a genuine, timely mistaken use of the wrong HMRC online form followed by prompt corrective steps, and on the merits found that an honestly held misunderstanding induced by HMRC webchat guidance can constitute an objectively reasonable excuse for late payment when assessed in context of the taxpayer’s attributes and remedial actions; accordingly the Schedule 56 penalty was set aside.
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 decision contains commentary that certified copies under the E Communications Regulations give rise to a rebuttable presumption of delivery and remarks on interpreting electronic delivery rules and HMRC’s automated processes. It also observes that mistakes are not automatically reasonable excuses but may be assessed more favourably when combined with personal circumstances and prompt remedial action.