Statutory obligation

Failure to file a return by due date

The taxpayer submitted her 2015-16 return late so HMRC imposed a penalty against which she appealed. Her adviser had written to HMRC asking it to register her for self assessment for 2016-17 so that dividends received could be reported and taxed. She assumed that the notice to file sent in response was for 2016-17 because she had already received a P800 for 2015-16 showing a repayment. After receiving the penalty notice she realised what had happened and filed the 2015-16 return.

HMRC said she had a statutory obligation to notify it that she needed to complete a tax return because she had become a company director. Further the P800 tells the recipient that they should tell HMRC about ‘in-year changes’ and this was such a change.

The First-tier Tribunal said the only statutory obligation was for someone to notify liability....