Proportionality of penalties imposed for late returns

The taxpayer had appealed without success to the First-tier Tribunal against late filing penalties for his 2010-11 2012-13 and 2013-14 self-assessment tax returns. No income tax was due and the penalties totalled £3 880. He took his appeal to the Upper Tribunal. The grounds were that the notices to file returns had not been issued correctly and that the penalties were disproportionate compared with the tax due.

The taxpayer represented himself at the First-tier Tribunal but was represented pro bono by Michael Ripley counsel instructed by Brown Rudnick before the Upper Tribunal.

On the first issue the Upper Tribunal found that while there had been deficiencies in the manner the First-tier Tribunal had reached its decision these did not amount to an error of law. 

On the proportionality issue the judges noted that HMRC appeared not to have considered any special circumstances that should have been taken...