Penalty is too much

The taxpayer made an error in completing his self assessment tax return: he failed to include income from his previous employer.

The business had been taken over by another company and he was unsure of what figures to enter for employment. Instead of completing two employment forms one for each employer he completed only one that for the current employer.

The result was that instead of owing tax (due on income from property) an overpayment occurred.

The taxpayer said he had voluntarily completed the return because of the property income furthermore he had not tried to evade paying tax. He had been unable to obtain help from HMRC on 31 January.

HMRC imposed a 15% penalty for careless behaviour.

The taxpayer appealed.

The First-tier Tribunal agreed the imposition of a penalty...