Not too late

The taxpayer submitted a paper tax return for 2006/07 in February 2008. It was unsolicited and showed a profit.

A second 2006/07 return along with the form for 2007/08 was submitted on her behalf by her adviser in January 2011. The second 2006/07 return showed a loss. The taxpayer said her advisers had filed the return not realising an earlier one had been sent.

She claimed her previous advisers had lost her papers. As a result the returns filed by the new advisers used estimated figures. She wanted to carry forward the losses shown on the second return to 2007/08 but HMRC said this was not possible because that return had been filed outside the time limit under TMA 1970 s 9ZA for amending the first 2006/07 return.

The First-tier Tribunal noted the Revenue did not dispute that the taxpayer could amend the first return...