Reasonable excuse

The taxpayer company appealed against the issue of penalty notices for the late submission of form P35 for 2007/08 the filing deadline for which was 19 May 2008.

The firm said its attempt to file on the date failed because Government Gateway crashed. The taxpayer had asked HMRC the following day for advice and was told to submit a paper P35.

The company did so and heard nothing more until receiving a penalty notice in September 2008. The taxpayer again contacted the Revenue which sent another P35 – but for 2005/06.

The business asked the taxman on 4 February 2009 to issue a form for the correct year. There was no evidence of the date of receipt by the taxpayer but a paper P35 for 2007/08 was received by HMRC on 22 June 2009.

The taxpayer did not argue that the penalties were unfair but said it...