Penalties for additional tax in respect of income carelessly omitted from the taxpayer’s self-assessment return could be suspended, but penalties in respect of tax on undisclosed bank deposits could not be suspended as the omission was deliberate.  

The appellant’s self-assessment return for the tax year 2013/14 omitted income of £4,237 relating to Sussex Building Services/Sutton Management. Furthermore, following an enquiry into the return, HM Revenue and Customs (HMRC) concluded that unexplained bank deposits represented undisclosed taxable income. The appellant appealed against the amendments to her tax return and penalties imposed by HMRC based on deliberate and concealed inaccuracy. 

The First-tier Tribunal (FTT) found that the appellant’s explanations for the unexplained deposits were not credible. £15,000 had been deposited to open the appellant’s bank