Factors to consider as possible special circumstances

The taxpayer appealed against the First-tier Tribunal’s decision in which it upheld late filing penalties of more than £500 000.

The facts were that the taxpayer had failed to file his 2012-13 self-assessment tax return but he had previously disclosed a chargeable gain for the year in a letter to HMRC and had made a voluntary prepayment.

The penalties did not take account either that payment or other payments on account made by the taxpayer for 2012-13. He appealed but the First-tier Tribunal decided that voluntary disclosure and prepayment did not amount to special circumstances to justify a reduction in penalties.

Before the Upper Tribunal the taxpayer raised several objections to the validity of the notice to file the return and the penalty notices. One of these was whether the notice to file was given by ‘an officer of the board’. On this point the Upper Tribunal referred...