Information notice penalty is invalid

In October 2017 and July 2018 HMRC sent the taxpayer first and second information notices under FA 2008 Sch 36. In January 2019 the department sent a third notice containing identical requirements to those in the previous notices. In March 2019 HMRC imposed a penalty on the taxpayer for failing to comply with the third notice.

The taxpayer appealed.

The First-tier Tribunal said the penalty notice was not valid. HMRC would have had to issue a penalty for failing to comply with the first information notice by November 2018 - within 12 months of but it had not done so. Rather it issued a penalty notice in March 2019 for failure to comply with the third information notice. The judge said: ‘HMRC cannot refresh the 12-month time limit by the simple device of reissuing the notice and repeating the information requirements.’

The penalty notice was therefore invalid because it related to...