Incomplete instructions

The taxpayer appealed against two £100 penalties imposed for the late submission of tax returns for 2008/09 and 2009/10.

The forms were necessary because the taxpayer’s employer had subjected the taxpayer’s income to tax at 20% instead of 40%.

Both documents had been due by the end of July 2011 three months from the date of issue; they were submitted on 23 August.

HMRC acknowledged that the 2008/09 return did not include in its guidance the correct information about the deadline for submission although the 2009/10 version did refer to the submission deadline.

The taxpayer said he had reasonable excuse for his delay: he had thought the forms were a formality because he believed he had paid the correct tax under PAYE for the years in question.

The First-tier Tribunal judge found it “significant” that the instructions on the 2008/09 return failed to specify the three-month period.

He...