Systems failure

The taxpayer submitted a late 2010/11 employer annual return. He claimed he tried to submit the form on 16 May using HMRC’s PAYE tools program.

The transmission failed and the taxpayer was subsequently unable to connect with the Revenue’s server.

He tried to obtain information from the taxman about how to address the problem but it was not until October 2011 that someone provided him with the solution.

The tax authority imposed a penalty for the late submission of the return against which the taxpayer appealed.

The First-tier Tribunal found that the taxpayer had tried to file the return but “encountered unexpected transmission difficulties”. HMRC’s helpline was unable to assist.

The taxpayer knew the return was due and tried in the intervening period to submit the form with no success.

He had done what he could to file the return and there was no “financial...