Hope For Reasonable Excuse Appeals When Relying on Third Party

The First Tier Tribunal have just upheld an appeal by a taxpayer against a VAT penalty for late payment.

These penalties are always particularly harsh and we should always celebrate their defeat.

This is a particularly pleasing victory for humanity because it appears to have widened the scope for appeals when the offence mas made by someone other than the taxpayer, themselves.

Normally, it is very hard to win an appeal when you delegate a tax compliance tax and the person you delegate to lets you down.

In this case, the Tribunal allowed the appeal because they decided that the third party had a reasonable excuse due to unforeseen circumstances.

So,  if you task someone with doing something for you and they mess it up, don’t just consider whether you have a reasonable excuse because you thought it was safe to trust them, think also whether a tribunal might think they might have a reasonable excuse as to why they let you down.