fbpx

Hacking Episode a 'Reasonable Excuse' for Late Filing of Tax Returns

9th August 2018 By Arman Khosravi

Taxpayers are personally responsible for filing their tax returns on time, and failing to do so can lead to stiff financial penalties. However, in one case, the First-tier Tribunal (FTT) ruled that a self-employed website developer whose accountants lost all of his data following a computer hacking incident had a reasonable excuse for missing the deadline.

The man had incurred penalties totalling £3,200 for failing to file two tax returns on time. He had ceased trading as a self-employed person and had no idea that the penalties had been imposed until after he informed HM Revenue and Customs (HMRC) of a change of address.

It eventually emerged that the accountants who had represented him during his period of self-employment had lost all of his data after their computers were hacked. When he discovered this, his returns were swiftly filed, but HMRC refused to waive the late filing penalties imposed under the Finance Act 2009.

In upholding his challenge to that refusal, however, the FTT found that he had a reasonable excuse for the late filings. The accountants had failed to inform him of the loss of his data and he was entitled to assume that they had followed his instructions and filed his returns on time. Once the truth emerged, he had taken immediate steps to remedy the situation. The penalties were quashed.

Source: Concious

Latest News

High Court Grants Parental Order Despite Previous Adoption

18th April, 2024 By

In law, adopted children are regarded as having been born to their adoptive parents. The Family Division of the High Court recently considered whether that fact precluded a parental order being granted under the Human Fertilisation and Embryology Act 2008 (HFEA) in respect of a child born via surrogacy. A couple who lived in the USA had entered into a surrogacy arrangement with another woman. An adoption order naming the couple as the child's parents had been made by a US court and was automatically recognised under UK law. However,...

Flat Owner Not Liable for Pre-existing Structural Issues

16th April, 2024 By

When building owners carry out works on their property, are they liable for damage to adjoining properties that results from pre-existing structural issues? The Court of Appeal recently provided welcome clarification on that question. The owner of a ground-floor flat wished to extend it by building out into his garden. He served notices on owners of adjoining properties, as required by the Party Wall etc. Act 1996. The works caused the rear wall of two adjoining properties to drop by about 2 mm, which led to internal walls and floor...

Challenge to Will's Validity Rejected by High Court

12th April, 2024 By

The best way to ensure your assets will be distributed as you wish is to have your will professionally drafted by a qualified solicitor. In a recent case, a challenge to the validity of an elderly man's will was dismissed by the High Court. The man had previously made a will in 2011, leaving most of his estate equally to his three children. In 2018, by which time one of his sons had predeceased him, he made a further will, leaving the residue of his estate to his other son...

Defiance of Family Court Orders Will Always End Badly

10th April, 2024 By

Custodial sentences very rarely come into play in the family courts. Where there have been repeated breaches of court orders, however, judges may have little choice but to clamp down. This was illustrated in the High Court during committal proceedings that stemmed from a child custody dispute. The background to the case involved contested proceedings between the father and mother of a young child. These concluded with a court order establishing that the child – a daughter – would live with the mother. Three months later the daughter travelled with...