- New penalties regime for late submission and late payment of VAT returns from 1 January 2023
- Taxpayer may not be liable to a penalty if they establish a reasonable excuse for lateness
- Reasonable excuse does not include lack of funds or reliance on another person unless reasonable care was taken
- FTT held that taxpayer had a reasonable excuse for lateness
- FTT considered ‘special circumstances’ such as HMRC’s incorrect advice
- HMRC’s decision not to reduce penalties to zero was deemed flawed by FTT
- FTT reduced penalties to zero in this case
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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