Taxpayer had reasonable excuse as took legal advice
Fastklean Ltd successfully challenged penalties relating to the late filing of employment intermediaries returns, as it relied on professional advice that such returns were not required.
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This looks to me like a fair result
The taxpayer took care by taking advice, twice.
This was not some chancer who knew the returns needed to be done and just did not get around to it
Shame on HMRC for even taking this to tribunal
What was the intension of parliament?
Was it an attempt to farm penalties or to accept that humans and tax advisors can make mistakes.
Does this create a general precedent then that if a tax payer takes advice from a professional or gets a professional accountant to file his tax return then the taxpayer has behaved reasonably and this might then preclude HMRC from imposing penalties for errors on a tax return?
Definitely not
FTTs do not set precedent
HMRC would need to appeal. If they do, it could be interesting.
HMRC will not appeal where there is a danger of establishing a precedent that goes against them.
Professional advice can preclude the charging of penalties but paying for advice does not always result in obtaining professional advice. There are many tax advisors who are not qualified to give professional advice and a few qualified advisors who will interpret legislation to suit their clients requirements. With advice from the unqualified the client normally loses but the qualified advisor chancing their arm they will normally pay the penalty on behalf of the client to avoid any legal comeback.