CCP06010 - Reasonable excuse: introduction

Although this guidance relies heavily on VAT case law, the general principles apply to all civil penalties where a reasonable excuse provision exists. There is no legal definition of what constitutes a reasonable excuse, but the law specifically excludes the lack of funds to pay any duty or penalty, and reliance on a third party as a reasonable excuse. Where a reasonable excuse exists there is no liability to a penalty or a warning letter. Remember though each case is treated on its own merits and what may be acceptable for one trader may not apply to another.