Return issued to collect PAYE underpayment

HMRC issued the taxpayer a P800 for 2015-16 showing an underpayment. It could not be collected through his tax code so the department sent him voluntary payment letters. He did not respond to these so HMRC issued a return. He failed to submit this and HMRC imposed late filing penalties against which the taxpayer appealed.

The taxpayer said it was not necessary for him to complete a return because his only income was his salary and employment benefits details of which HMRC would have from his employer and interest details of which would be available from the financial institutions. He claimed not to have received the P800 and said HMRC should be able to collect any underpaid tax from his PAYE income. It should either cancel the penalty or withdraw the notice to file. The taxpayer referred to Goldsmith (TC6284) which concerned similar circumstances.

The First-tier Tribunal noted...