HMRC continues to try and collect further monies through penalties. Taxpayers who make an error can expect to be asked for a penalty on the basis that they carelessly gave an incorrect account (Finance Act 2007, para 1.1). However, the decision in Mr J R Hanson v HMRC [2012] UKFTT 314 (TC)is beneficial to taxpayers.

Mr Hanson’s Tax Return had been prepared by his accountants who had acted for him for many years.