Activation code not received

The taxpayer company appealed against a penalty for the late filing of its 2010/11 employer end-of-year return.

The firm explained it applied for an activation code on 12 May 2011 to be able to file online and then sent a paper copy of the return along with a cheque for the outstanding tax while waiting for the code to arrive.

The taxpayer tried again to obtain a code in August 2011 and made other attempts between September and December. The online return was finally submitted in February 2012.

HMRC claimed activation codes would have been issued on each occasion the company asked but the First-tier Tribunal said there was no evidence to prove codes were sent; it was more accurate to say they “should” have been issued.

The tribunal noted that the taxpayer had allowed a week for a code to arrive in time...