First timer

The taxpayer firm appealed against a late filing penalty in respect of its 2009/10 employer’s annual return P35. The company had been trading for only eight months and this was the first time it had to submit a return.

It believed it had submitted the return online in May 2010 and was unaware HMRC had not received the paperwork until a penalty was issued in September.

The company said it did not know it should have received an automatic acknowledgement that the return had been received and claimed reasonable excuse.

The First-tier Tribunal judge said he was satisfied that the company made an online return in May. Lack of knowledge about the receipt arrangements was understandable given this was the first time the company had needed to submit a return.

The judge said the company’s actions ‘were those...