Daily penalties notices can be issued retrospectively

The two appeals were heard separately by the First-tier Tribunal. In both cases the companies submitted annual tax on enveloped dwellings returns late and after the returns were received HMRC charged an initial fixed penalty of £100. In the notices charging the penalties HMRC stated that daily penalties under FA 2009 Sch 55 para 4 would be charged if the returns were more than three months late. It later issued notices for the maximum daily penalties and also further fixed penalties. Both companies appealed against the penalties.

The First-tier Tribunal dismissed Priory London Ltd’s appeal. However the tribunal allowed Jocoguma Properties Ltd’s appeal in respect of the daily penalties saying a notice under Sch 55 para 4(1)(c) specifying the date from which the daily penalty was payable could not be given retrospectively. As the return had already been filed when...