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Late filing penalties quashed

04 August 2015
Issue: 4512 / Categories: Tax cases , Compliance

Z Brennan (TC4497)

In October 2014 HMRC imposed late filing penalties of £900 for the taxpayer’s 2012/13 return which they said should have been submitted by 31 January 2014. The taxpayer appealed saying the letter telling her about the penalties was the first she had heard that the return was required. She had completed the return for 2013/14 because she had been asked by HMRC to do so.

The First-tier Tribunal said although it is the responsibility of the taxpayer to submit a return someone can “only declare that which he or she knows or believes ought to be declared. If the state of mind of the appellant is that there is nothing to declare that can in appropriate circumstances amount to a reasonable excuse”.

In this instance the taxpayer knew her income was within the personal allowance so no tax was due and this was shown...

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