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Reasonable excuse was no defence against discovery assessments

By Mark McLaughlin, April 2025

The taxpayer’s reasonable excuse argument was no defence against discovery assessments for the tax years in question, but expenses claims for equipment to work from home during the Covid lockdown and the costs of attending a conference were allowed. 

The appellant was an employee in 2018/19 and 2019/20. He received child benefit in the relevant tax years. His adjusted net income exceeded £50,000 and was in excess of his partner’s income. However, the appellant did not submit tax returns for the years in question. Following an HM Revenue and Customs (HMRC) compliance check into the appellant’s tax position, discovery assessments were issued. The appellant appealed. 

The First-tier Tribunal (FTT) noted that the case had originally started as an appeal against discovery assessments and penalties covering six tax years. However, by the time of the FTT hearing, the penalties and assessments relating to the first four tax

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