Penalty for failing to comply with information notice

The taxpayer owned and let properties. In 2016 HMRC became aware of her letting business and the income tax self assessment (ITSA) enquiry unit wrote to her for information.

In August the taxpayer appointed an adviser who asked the unit for more time to respond to the letter which it granted. In September the taxpayer completed form SA1 to register for self assessment after which HMRC issued a notice to file a return under TMA 1970 s 8. Neither she nor her adviser replied to the ITSA enquiry unit’s letter by the extended deadline.

In November the unit issued an information notice (FA 2008 Sch 36).

The taxpayer submitted the 2015-16 return in December and filed voluntary self-assessment returns for the years 2007-08 to 2014-15.

HMRC issued a penalty for failure to comply with the Sch 36 notice. The taxpayer appealed arguing...