Lack of attention to HMRC’s correspondence

The taxpayer appealed against penalties for late filed returns for the years 2013-14 to 2015-16. HMRC did not accept the appeal because it was out of time so she applied to the First-tier Tribunal.

She said the penalties came to light only when she filed her 2017-18 return when HMRC offset her tax payments against the penalties. She had not heard from HMRC in the intervening years but thought she only had to complete her housing benefit forms because government offices were linked.

The First-tier Tribunal accepted ‘on the balance of probabilities’ that the taxpayer did not know about the deadline for notifying appeals despite HMRC’s correspondence clearly setting these out.

The taxpayer said she had a reasonable excuse for the late returns. In her view the government should have known her income because she claimed various benefits and tax credits. Further there was a family problem that took...