Penalties for late filed real-time information returns

HMRC imposed penalties on the taxpayer on the ground it had failed to submit its 2017-18 real time information (RTI) returns by the due date. The taxpayer appealed.

It used HMRC’s basic PAYE tools software and claimed this showed it had submitted the correct information by the correct dates and for the correct months.

HMRC produced two print-outs as presumptions that the returns had been filed late (Employments (PAYE) Regulations SI 2003/2682 reg 196). However the taxpayer rebutted this with its own print-outs showing the submissions had been made. The judge said there was nothing in the taxpayer’s print-outs to show there were outstanding returns or unsuccessful submissions. He therefore cancelled the penalties.

The judge added that there was a ‘puzzling aspect’ to the penalties in this case: ‘Given that there is no notice to file an RTI return how can HMRC impose a penalty for failure...