In Shaun C Long v HMRC [2018] TC06563 is another case where the FTT has decided that HMRC had been incorrectly overcharging six and twelve month late filing penalties for nil liability late self assessment return.
- The taxpayer was late filing his Self Assessment returns for 2009/10 to 2012/13
- He made losses in two of the years.
- HMRC assessed Late Filing Penalties
- The taxpayer appealed claiming reasonable excuse.
The First Tier Tribunal (FTT) found that having twins was not a reasonable excuse for late filing of the earlier return.
It then considered HMRC’s calculation of penalties.
- The presiding judge and tribunal member disagreed on interpretation of paragraph 17(3) of schedule 55 FA 2009.
- Overruling the tribunal member the judge considered that as multiple penalties applied 17(3) restricted the six and twelve month penalties under paragraphs 5(2)(b) and 6(5(b): they cannot exceed 100% of the liability to tax.
The appeal against the two £300 penalties is allowed.
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