Lack of awareness of need to file a self-assessment return

In 2012-13 the taxpayer worked as a joiner/builder for P Ltd. Unknown to him his employer used the wrong PAYE code which resulted in an underpayment.

When HMRC became aware of the underpayment it issued him a tax return. He failed to complete this so HMRC imposed penalties.

The taxpayer was unaware of this because since June 2011 he had lived at various addresses having left his home in West Kensington which he had shared with his brother since April 2010. He was registered as homeless with Westminster City Council. His move from West Kensington was due to a family dispute which may have contributed to correspondence from HMRC not being forwarded to him.

Because he was unaware of the mistake by his employer the taxpayer had ‘no pressing reason’ to notify HMRC of his new address.”

He eventually filed his tax return...