HMRC issued FA 2008, Sch 36 penalties too late

A recent Upper Tribunal (UT) decision – Baxendale-Walker v HMRC [2024] UKUT 00154 (TCC) – highlights that as soon as there has been a failure to comply with an information notice a taxpayer is automatically liable for a fixed penalty even if the failure is short-lived and HMRC can move straight to applying for a tax-related penalty. However in this case HMRC found its application struck out as a result of taking action either a short period too soon or a short period too late.

In this case HMRC issued the taxpayer with an information notice that had been approved by the tribunal under FA 2008 Sch 36. An information notice requires the information listed in the notice to be provided to HMRC within a specified time frame to enable HMRC to check a person’s tax position. An information notice that has been...