Mr G Knapper v HMRC (TC1220) – Reasonable Excuse
Date:
13 October 2011
Summary:
Mr Knapper filed his 2007/08 self-assessment tax return on time, but failed to pay the tax by the due date. He negotiated a Time To Pay arrangement with HM Revenue & Customs (HMRC) whereby he would make monthly instalments to clear the debt. However, after 3 instalments, the payments ceased. HMRC withdrew the arrangement and imposed surcharges in respect of the unpaid tax. Mr Knapper appealed against the surcharges on the grounds that he had insufficient funds.
In July 2007, Mr Knapper had left his employment and commenced as a contractor. He worked for one particular client and recruited an employee to assist. However, things quickly went awry and the client failed to make all of the agreed payments to Mr Knapper. In January 08, the client terminated the contract.
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Mr G Davis v HMRC (TC1246) – Penalty Assessment
Date:
6 October 2011
Summary:
Mr Davis appealed against a penalty assessment following an error in his self-assessment tax return. He had failed to include earnings from his previous employer. Mr Davis' employer was taken over by another company during the year, but instead of completing two sets of employment pages, he had only completed one showing the earnings from the current employer. As a result, an tax overpayment occurred.
HMRC argued that Mr Davis had been careless in submitting an incorrect tax return and imposed a penalty of 15% of the potential lost revenue.
Mr Davis appealed, arguing that the inaccuracy was not caused by careless behaviour. Whilst he was confused regarding the entries on the P60, he had sought advice from HM Revenue & Customs (HMRC), but had been unable to obtain help on 31 January, the day he submitted the return.
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Professor A K Halpin v HMRC (TC1359) – Income Tax on bank interest – when taxable
Date:
6 October 2011
Summary:
Professor Halpin did not declare any bank or building society interest on his tax return. HM Revenue & Customs (HMRC) queried this on the basis that information it held suggested this declaration to be incorrect.
It was established that interest had been earned on an account that Professor Halpin held jointly with his wife, but that he did not believe it needed to be declared. He contended that the beneficial interest in the money contained in the joint account could not be known until one, other or both of the holders removed the money. As such, it was not until this point that it could be known who was entitled to receive the interest. HMRC disagreed and issued an assessment for the additional tax due on Professor Halpin's half share of the interest.
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Tax Tribunals 