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The taxpayers were partners in Shenstone Art Partnership. They appealed against penalties issued for the late filing of their 2016-17 tax returns. HMRC cancelled the penalties against Ms S but not for Ms W and Mr W. The taxpayers’ appeal was late and HMRC refused to accept it. The taxpayers therefore applied to the First-tier Tribunal for permission to make a late appeal.
The taxpayers’ first ground of appeal was that HMRC told Mr W that no appeal could be made until the tax returns were filed. HMRC’s note of the telephone conversation confirmed this. The tribunal decided the taxpayers were entitled to rely on this statement. There was no reason why they should check with their accountant when Mr W had asked ‘the person who can be expected to know and received a clear answer’. This was a very good reason for the taxpayers’ delay in making the appeal, so the tribunal granted permission for the late appeal.
