Unnecessary delay in completing tax return

The taxpayer was an employee. As a result of a taxable benefit that had not been included in her PAYE code in June 2018 HMRC sent her a P800 showing a small tax underpayment. This would have been collected through a coding adjustment but HMRC could not do this because the taxpayer was on maternity leave. In January and April 2019 HMRC wrote requesting a voluntary payment but because the taxpayer did not reply said she would have to complete a tax return.

The taxpayer failed to submit a return in time so HMRC issued penalties against which the taxpayer appealed. The return was filed in September 2020. She said she had reasonable excuse because she was out of the UK in early 2020 had medical problems and experienced difficulties working while providing childcare during the pandemic.

The First-tier Tribunal sympathised with the taxpayer’s...