The appellant appealed against a penalty of £600 imposed by HM Revenue and Customs (HMRC) for the late filing of a PAYE return for the tax year 2010/11. The penalty covered the period from 22 May 2011 to 21 October 2011.
The appellant relied on his accountant for the submission of his PAYE returns. The accountant had suffered poor health for a number of years, but his health substantially deteriorated. The accountant was admitted to hospital for treatment in May 2011, and by August/September 2011 was advised that he was not fit for work. He subsequently died.
It was argued for the appellant that it was reasonable to rely upon his accountant. The case Maxwell v HMRC [2013] UKFTT 459 was cited in support of the proposition that it is reasonable to rely on a third party agent as a reasonable excuse against a late filing penalty. In addition, it was pointed out that in a similar case involving another client of the
