No reasonable excuse

Penalties for late filed employer’s annual return

The taxpayer appealed against penalties totalling £1 200 imposed under TMA 1970 s 98A(2) and (3) for the late filing of the employer’s annual return for 2010/11. He had been trading as two separate businesses: one in partnership as the Malt Shovel Hotel but also as a sole trader under a different PAYE reference.

He wrote to HMRC about the penalty appeal on 5 May 2015 stating that he had closed his businesses in May 2011 and that the address had changed for both. However when the penalty notification was originally sent on 16 February 2012 the taxpayer wrote to HMRC on 19 March 2012 enclosing copies of letters one for each business and both dated 16 June 2010 stating that they had ceased on 31 May 2010. In each case he confirmed that he would be...