Farmer v Commissioners for His Majesty's Revenue and Customs (INCOME TAX - late filing penalties under Schedule 55 of the Finance Act 2009 for late filing of a self-assessment tax return) [2024] UKFTT 790 (TC) (2 July 2024)

Parties

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

1. 1 Whether penalties for late filing were correctly issued
2. 2 Whether the appellant established a reasonable excuse for late filing
3. 3 Whether special circumstances justify reduction of penalties

Ratio Decidendi

The appellant had a reasonable excuse for the initial late filing penalty as the tax return was sent to an HMRC-associated address, but not the correct one; the reasonable excuse ended upon receipt of the first penalty notice, and the failure was not remedied without unreasonable delay, so daily and six-month penalties stand; no special circumstances justify further reduction.

Court Disposition

Appeal allowed in part

Orders

• Initial late filing penalty of £100 set aside
• Daily penalty of £900 and six-month penalty of £300 confirmed