Do not rely on PAYE

Late filing of personal tax return

In July 2015 HMRC sent the taxpayer a notice to file a return for 2013-14. The deadline was 25 November but the taxpayer did not submit it. HMRC issued penalties against which he appealed.

The matter proceeded to the First-tier Tribunal.

The taxpayer said he did not understand why he had been told to submit a return. He was an employee and as far as he was aware had no tax liability. HMRC said his records showed he had been given two personal allowances. He had begun employment with one company in May 2012 but had started a second job in September 2013. He did not give the second employer a form P45 but completed a checklist to establish his PAYE code. This indicated wrongly as it turned out that it was his first job since April 2013...