Penalties for late filed corporation tax returns

A scaffolder had been employed and self-employed for many years. In 2015 he incorporated his business because one of his main ‘employers’ wanted to treat him as an independent contractor not an employee. He appointed an accountant to deal with the tax and accounting affairs of his company and passed any communications from HMRC to him.

No company tax returns were filed so HMRC issued penalties and eventually it was struck off the register of companies. The taxpayer appealed against the penalties on the grounds that neither he nor his accountant had received notices to file returns from HMRC.

The First-tier Tribunal said it was for HMRC to prove it had sent the notices. In this instance it relied on three computer printouts. Referring to previous decisions including Platt (TC7131) and Griffiths (TC7239) the judge concluded that even though those cases dealt with individual rather than...