Correct imposition of six-month and 12-month penalties

The taxpayer appealed against penalties imposed by HMRC under FA 2009 Sch 55 for the late filing of self-assessment returns for 2010-11 and 2012-13. He had been self-employed as a taxi driver for both periods but his income was less than the personal allowance so no tax was due in either year.

He said he had submitted the returns by first-class post for 2008-09 2009-10 2010-11 and 2012-13 between June and August of each year. However HMRC said it had no record of receiving the returns and issued penalties. It later removed the penalties for all the years except those under appeal. It said it had received paper copies of the 2010-11 and 2012-13 returns in April 2015.

The First-tier Tribunal said the taxpayer could not provide any evidence to show he had filed the original returns. It therefore had ‘no alternative’ but to conclude...