Inaccurate mileage relief claim and errors in tax returns

The taxpayer was a mobile care worker travelling to and from her clients in her own car. She also used it to carry out errands for them. As she had difficulty reading and writing English she relied on one of her elderly clients to prepare her tax returns for her which she signed without checking. She did not keep mileage records.

She claimed mileage allowance in her tax returns. HMRC reduced the claims on the basis that they were inaccurate and her records were inadequate. It also imposed penalties.

The taxpayer appealed.

The First-tier Tribunal found on the evidence that the mileage figures were higher than HMRC allowed although lower than the taxpayer claimed. There were other errors in the tax returns in relation to the tax deducted under PAYE. However the judges disagreed with HMRC that the PAYE errors were deliberate. They said the taxpayer ‘was not in control...