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Basis for penalty for late filed return

The taxpayer’s partnership return was posted to HMRC on 29 October. In February HMRC returned it because the figures did not add up correctly. The letter also referred to the form having been received on 10 November – several days after the due date for paper versions. The department issued a late filing penalty disputing that it had received the return by 31 October as claimed by the client. It later issued daily penalties.

The taxpayer appealed.

The First-tier Tribunal accepted that the taxpayer’s agent had sent the return by first class post on 29 October. The judge said obtaining proof of posting was not a legal obligation and in its absence it was a ‘question of assessing the evidence’. Further Royal Mail states that first-class post is delivered the next working day so the form should be...