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ARTICLE · 22 OCTOBER 2026

Wrong Advice, Right Penalty? The Upper Tribunal On Reasonable Excuse

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The Upper Tribunal has ruled that taxpayers cannot simply rely on professional advice as a reasonable excuse for non-compliance with HMRC information notices. This decision examines when reliance on advisers crosses the line from reasonable to negligent, and what level of engagement taxpayers must maintain even when professional help has been instructed.

United KingdomTax
Kate Garcia
Kate Garcia
Thomas Wilkinson
Thomas Wilkinson

Summary

In Hill and another v HMRC [2026] UKUT 306 (TCC), the Upper Tribunal held that two taxpayers did not have a reasonable excuse for failing to comply with HMRC information notices, even though a professional adviser had concluded that no action was required.

Background

The taxpayers were the scheme administrators of separate pension schemes. In January 2018, HMRC issued information notices requiring them to provide certain information. After receiving the notices, an intermediary (the scheme operator) instructed tax advisers to advise on the appropriate response.

The advisers concluded that, because the relevant pension schemes had been wound up, the taxpayers were not obliged to provide the information or documents requested. That view was relayed to HMRC on the taxpayers’ behalf. HMRC responded that the notices had been issued to the taxpayers, rather than to the pension schemes, and that the taxpayers therefore remained responsible for complying with them.

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