Reliance on agent was not a reasonable excuse

The taxpayer filed her 2015-16 return online on 16 October 2017. Penalties were issued as follows: a basic penalty of £100 for a late return (Sch 55 para 3); daily penalties totalling £900 (Sch 55 para 4); and a further penalty of £300 (Sch 55 para 5) because the return was more than six months late. The taxpayer appealed on the basis that the penalties had not been properly notified and that she had a reasonable excuse. This was that she had relied on her agent who had prepared the return on time but had not submitted it.

The tribunal found that the penalties under paras 3 and 5 were properly raised but the penalties under para 4 could not be upheld because the taxpayer had not been notified properly of the amounts. Although the taxpayer had been warned that daily penalties were accruing and was informed when they...