Howarth v Revenue and Customs (Self Assessment Tax Return; Failure to submit on time; Penalties; Schedule 55; Reasonable Excuse; Electronic Communications; Late appeals) [2025] UKFTT 499 (TC) (01 May 2025)

Parties

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal, Full Decision After Remote Video Hearing

Legal Issues

1. 1 Whether the appellant's late appeal should be admitted despite significant delay
2. 2 Whether the appellant had a reasonable excuse for late submission of the 2020-21 tax return

Ratio Decidendi

The appellant's failure to submit her 2020-21 tax return on time was objectively reasonable given her inadvertent opt-in to electronic communications, her reasonable belief that submission was complete, and prompt action upon learning of the issue; thus, she had a reasonable excuse under Schedule 55, paragraph 23 of the Finance Act 2009, and the penalties must be cancelled.

Court Disposition

Appeal allowed; penalties cancelled.

Orders

• Late appeals admitted.
• All penalties for late filing of the 2020-21 tax return cancelled.