Falling out is no excuse

The taxpayer company’s 2009/10 employer return P35 was filed online on time stating no forms P11D or P11D(b) were due.

But two P11Ds for the year were sent to HMRC in March 2011 and a P11D(b) was submitted in April 2011. The Revenue issued a penalty for £900 because the P11D returns should have been received by 6 July 2010.

The company appealed.

HMRC queried why the company was unaware when the form P35 was completed that a P11D and P11D(b) were also needed.

The explanation was the two brothers who owned the business had fallen out and information went astray which caused problems with paperwork and administration.

The First-tier Tribunal noted the problems but said they did not constitute a reasonable excuse. The taxpayer firm could have contacted HMRC to discuss its difficulties but did not do so.

The fact the company...