Late filing penalties

Whether late filing had a reasonable excuse

The taxpayer had intended to submit his 2012-13 tax return electronically by the filing date of 31 January 2014. But after attempting to obtain an electronic user ID and password from HMRC in January 2014 (before the deadline) and failing the taxpayer’s agent submitted a paper return. The agent claimed to have submitted this paper tax return in February or March 2014 but HMRC said it was received in May 2014.

HMRC charged penalties totalling £1 300 comprising of: a £100 late filing penalty; a £300 ‘six month’ penalty; and ‘daily’ penalties totalling £900. The taxpayer appealed against the ‘six month’ and ‘daily penalties’ totalling £1 200 arguing that the paper tax return filed in February or March 2014 – and therefore only four or five months after the paper filing date of 31 October 2013 and two...