Lacking care

HMRC made informal requests to the two taxpayers for details of their taxable income. They did not respond

The Revenue issued information notices in March 2012 under FA 2008 sch 36 para 1. The taxpayers did not comply and the department imposed penalties on each of them.

Their tax adviser submitted partnership and individual returns in August 2012 for the six years ended 5 April 2011.

HMRC accepted the figures but the taxpayers did not pay the outstanding tax or make an offer to settle their liabilities. The Revenue imposed fines under FA 2008 sch 41 for failure to notify a tax liability.

The taxpayers appealed saying they had reasonable excuse for the failure to notify because the taxman had not issued self assessment returns.

HMRC did not accept the excuse because the couple had previously been in self assessment.

The taxpayers made a...