![TC09554 - [2025] UKFTT 00747 (TC)](https://backend.juristeca.com/files/emisores/logo_7HSuEAV.png){kind=logo}
HMRC’s arguments
HMRC’s arguments
In their statement of reasons, addressing the facts of the case and the thrust of the Appellant’s factual case, HMRC identified the following reasons why the case should not qualify for a special reduction under paragraph 13.
Compliance with inspections is not appropriate for special reduction.
The Appellant cannot rely on any repayments/repayment claims to pay their future VAT returns.
The penalty and interest thereon, has been charged in line with legislation.
Any repayment of that interest does not constitute a reasonable excuse for the failure of payment by the due date.
Furthermore, HMRC observed that penalties are in place to promote efficient operation of the taxation system and are intended as a measure of fairness, so that taxpayers who pay late do not gain any advantage over those who pay on time. The amount of the penalties charged is set within the legislation.
Mr Chaudhary’s oral submissions were consistent with HMRC’s statement of reasons, with Mr Chaudhary adding the following summary of the effect of the Edwards case: “To be special, the circumstances may or may not be specific to individual but must be relevant to situation under consideration and must be sufficiently special to reduce penalty”.
- Heading
- Introduction
- Overview of the case
- The legislative scheme
- The case law on reasonable excuse
- The case law on special reduction
- Findings of fact
- The Appellant’s complaint to HMRC
- Penalty for late payment
- Reasonable excuse
- Discussion
- Special reduction
- HMRC’s arguments
- The Appellant’s arguments
- Discussion
- Conclusions