David Hill & Anor v The Commissioners for HMRC

Facts

Mr Hill was the scheme administrator of the Molten Metal 2012 Pension Scheme and Mr McCracken the scheme administrator of the DMI Pension Scheme. HMRC issued each of them an information notice in January 2018. At the time Liddell Dunbar Ltd operated the schemes on behalf of the scheme administrators as a practitioner, and following receipt of the notices Liddell Dunbar engaged Independent Tax to advise it and to correspond with HMRC on the appellants' behalf. A review conclusion letter of 22 October 2018 varied but otherwise upheld the notices. Liddell Dunbar told the appellants that Independent Tax's view was that, as the pension schemes had been wound up, there "should be no need to respond". The notices were not complied with, and HMRC imposed initial penalties of £300 each in December 2018 followed by three tranches of daily penalties. Before the First-tier Tribunal the appellants argued that their reliance on that advice gave them a reasonable excuse under paragraph 45 of Schedule 36 to the Finance Act 2008. The FTT dismissed the appeals, finding no reasonable excuse and the penalties not excessive. The FTT refused permission to appeal; the Upper Tribunal refused permission on grounds 1–5 but granted it on ground 6 (quantum), and granted permission on ground 5 at a renewed oral hearing.