HMRC’s refusal to grant special relief in respect of income tax determinations against an individual who was dyslexic and had serious learning difficulties was unreasonable, and pursuing recovery of the tax was unconscionable.
The appellant was a self-employed painter and decorator in 2002/03 and 2003/04, working around three days per week. He ceased in March 2004, and did not re-commence self-employment until 2013.
HM Revenue and Customs (HMRC) issued self-assessment returns for the tax years 2002/03 to 2007/08 inclusive. The returns were not filed, and HMRC subsequently issued determinations of the appellant’s tax liability. The determinations were made without reference to actual business records (which indicated that the appellant’s income was less than his tax allowances for each of the relevant tax years). The appellant failed to submit his tax returns timeously to displace HMRC’s.
