In both Behsodi v HMRC [2017] TC6156 and Moore v HMRC [2017] TC6155 the First Tier Tribunal (FTT) was invited to consider whether HMRC had correctly implemented daily penalties. In both cases the answer was 'No'.
The law requires, for a person to be liable to daily Late Filing Penalties, HMRC has to do two things:
- Decide a daily penalty should be payable
- Give the taxpayer notice specifying the date from which the penalty is payable
The burden of proof is on HMRC.
In neither case did the documents provided to the FTT include the start date of the penalties nor did HMRC provide any evidence that they had otherwise complied with the second requirement.
Comment
For completeness, we note that other late filing penalties were also appealed in each case, but the FTT did not allow these appeals as the taxpayers provided no reasonable excuse.
For assistance in appeals, see How to Appeal a Tax Penalty or contact the Virtual Tax Partner support team for assistance in drafting appeals or reviewing tricky cases.
Links:
Behsodi v Revenue and Customs [2017] TC6156
Moore v Revenue and Customs [2017] TC6155