Khalil Opticians Ltd v HMRC

In Khalil Opticians Ltd v HMRC (TC01448 – 14 October) a company (K) submitted its P35 after the due date and HMRC imposed a penalty under TMA 1970 s 98A. The First-tier Tribunal dismissed K’s appeal. Judge Staker held that ‘reliance on a dilatory bookkeeper cannot be a reasonable excuse’.

Why it matters: There is a substantial body of case law on what constitutes a ‘reasonable excuse’ for the purposes of TMA 1970 s 98A. The Tribunal upheld HMRC’s view that reliance on a dilatory bookkeeper is not a reasonable excuse for a late return.