Reasonable assumption

The taxpayer appealed against a penalty of £100 for the non-submission of a self-assessment tax return for the year 2009/10.

He claimed he stopped being self-employed when he began employment with the Royal Mail in November 2008 and he said he told HMRC about the change ‘several times’ including in his 2008/09 tax return which was submitted on 21 October 2010.

The First-tier Tribunal accepted the Revenue's contention it did not know about the taxpayer’s ceasing self-employment until it received his 2008/09 tax return.

However the judge noted the deadline for paper 2009/10 returns was 31 October 2010 and 31 January 2011 for online returns.

The taxpayer knew his 2008/09 return had been submitted by 21 October and that he had told HMRC on the return that he was no longer self-employed.

It was therefore reasonable for him to believe it was unnecessary for him...