Notice is appropriate

The taxpayer appealed against daily penalties amounting to £900 in respect of a late filed tax return. The First-tier Tribunal found in his favour on the ground HMRC had not given proper notice about the date from which the fines would be imposed.

The Revenue appealed.

The Upper Tribunal agreed that one purpose of a notice under FA 2009 sch 55 para 4 was to warn taxpayer they would suffer daily penalties if they did not file their returns – but it could not have been the draftsman’s intention that the tax department should have to make individual decisions for every taxpayer who fails to submit a form for more than three months after the due date.

Rather HMRC “decide in advance that all taxpayers who default for more than three months should suffer daily fines”.

The self assessment reminder and the SA326D (late tax return notice of...