Genuine belief

A taxpayer company received a £400 penalty in September 2010 for failing to file its end-of-year employers form P35.

In its appeal the business said it had sent the return in time and received an email acknowledgement from HMRC stating the return had been received.

As a result the company believed it had met its obligations. It transpired the return had been sent in test model; the firm should have resent the return. On the ground it believed it had submitted the return the taxpayer claimed reasonable excuse.

The First-tier Tribunal turned down the appeal but set aside the decison at the review stage after identifying an error in law.

At the second First-tier Tribunal the issues to be considered were:

• whether a return sent in test mode had been delivered and accepted for the purposes of the Income Tax (PAYE)...