Early notification

Special circumstance for late return

The taxpayer was a registered European lawyer in England and Wales. She notified HMRC that she had started self-employment in February 2015. The department issued a notice to file a 2014-15 return but she failed to submit one because she had no income for the year. As a result of receiving a penalty she filed a nil return online in July 2016. She also appealed against the penalty saying she did not know she had to file a return even if she had no income in the UK.

At an earlier hearing before the First-tier Tribunal the judge found the taxpayer did not have a reasonable excuse and confirmed the £100 penalty. However after receiving the return HMRC issued daily penalties. The taxpayer appealed against these.

The First-tier Tribunal said the taxpayer had mistakenly registered for self assessment in February...