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J C Parrott trading as K J Creations (TC5914)
Partnership return submitted with individual returns
P was one of two partners in KJ Creations. The partners requested paper tax returns from HMRC because they had problems completing them online. They submitted the forms by recorded delivery before the 31 October deadline. HMRC said the partnership return was not submitted in time and imposed late filing penalties.
The taxpayer appealed.
The partnership return had become separated and lost within the tax office.
The First-tier Tribunal concluded on balance the form had been filed on time. The partners said they submitted their individual returns with the partnership return. The fact that they would have had to take figures from the latter to include on their personal returns supported their contention, according to the tribunal.
The judge said the likelihood was that the partnership return had become separated and lost within the tax office.
The taxpayer’s appeal was allowed and the penalties were cancelled.
