Penalties for VAT and Excise Wrongdoing: in what circumstances is a penalty payable: reasonable excuse: what is not a reasonable excuse
A person may have a reasonable excuse for a non-deliberate VAT or excise wrongdoing.
While you must consider all relevant circumstances, there are some situations which we will not normally accept alone as a reasonable excuse.
- Pressure of work.
- Lack of information.
- Ignorance of basic law.
What is or is not a reasonable excuse is personal to the individual’s abilities and circumstances. Those abilities and circumstances may mean that what is a reasonable excuse for one person may not be a reasonable excuse for another.
The law specifies two situations that are not reasonable excuses. These are
- Shortage of funds, see CH92300 for more detail and an exception, an
- Reliance on another person, see CH92350 for more detail and an exception.
FA08/SCH41/PARA20 (2)(a) & (b)