Late return penalty imposed on the wrong party

The taxpayer operated a website that marketed a business where she and others operated a café in which customers could be taught Spanish. The facts were confusing but it appeared that the teaching was done through a company owned by the taxpayer.

HMRC issued returns requiring information under the employment intermediaries rules in ITEPA 2003 s 716B. The return was due on 5 August 2016 but was not made until 5 October. HMRC issued a late return penalty and the taxpayer appealed.

It was unclear whether the penalty was chargeable on the taxpayer or on the company: the tribunal noted that HMRC officers were divided in their opinion on the matter. HMRC’s evidence on whom the penalty was charged was incomplete but implied that it was charged on the taxpayer personally.

The tribunal determined that the person chargeable was the company and so discharged the penalty – it...