Usha Devi Teji v Her Majesty's Revenue & Customs

Facts

The appellant, Miss Usha Devi Teji, was formerly a practising barrister. Following the birth of a child in 1995 she developed endometriosis, a gynaecological complaint causing extreme pain and requiring regular surgery, with admissions in 1998 and in every year from 2000. She also suffered a depressive illness; a medical certificate from Dr Jonathan Riddell dated 4 June 2004 recorded that she had been unable to work full-time since 1998 and was then under the care of a consultant psychiatrist. She gave up work altogether in April 2001. Her VAT returns and payments were late in every period from 01/95 to 11/98 and in a further twelve periods between 05/99 and 08/04, attracting default surcharges. Because a barrister accounts on the cash basis, returns for periods after she ceased practice were still generated by receipts for earlier work. Her husband, Mr Stephen Pinning, was unaware of any difficulty until a Customs officer called at their home in about May 2004 to collect outstanding tax and penalties; he then found that she had put all VAT correspondence unopened in a drawer. He appealed on her behalf on 20 June 2005 against surcharges for the periods 04/97 to 08/04, well outside the time limit, so that leave to appeal out of time was required. Customs had already accepted a reasonable excuse for the defaults in periods 08/98, 11/98, 05/99 and 08/00.