Posted by karengray - October 17, 2017 12:14 pm
It pays to seek expert advice
The First-tier Tribunal (Tax) (FTT), in the case of Merrie  TC 06103, recently dismissed an appeal made by the taxpayer against a penalty.
The penalty was issued in respect of a failure to correctly disclose a capital gain realised by the taxpayer on the sale of his business.
The tribunal ruled that a misunderstanding on the part of the taxpayer of advice and guidance concerning reporting requirements, as published by HMRC, did not prevent the taxpayer being issued with a penalty that was valid.
The taxpayer had made a gain of just under £10m. However, rather than seeking advice from a professional in order to correctly report the gain, he relied instead on guidance from HMRC which he, unfortunately, misunderstood. The costly result was a penalty of £95,000, which the FTT upheld.
Always seek professional advice
To avoid the ‘taxman gift that keeps on giving’, we strongly recommend that you always seek professional advice when completing your tax return. Whilst it may seem to save you fees in the short-term the costs of even simple errors can be large.
Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Therefore, before taking any action we recommend you get in touch with us to discuss your own situation.
HMRC has issued their latest list of excuses for late tax returns ahead of this year’s tax return deadline. You may have already seen the headlines, which have been widely picked up by the press and, announced on at least one radio station yesterday. These included, amongst others: “I couldn’t file my return on time […]