A penalty for a careless tax return error was upheld, but HMRC’s decision not to suspend the penalty was flawed, and HMRC was ordered to suspend the penalty upon suitable conditions being established.
The appellant was employed by a company (A) until June 2013. He was then employed by another company (S) for the remainder of the tax year. S subsequently provided the appellant with an end of year form P60 for the tax year 2013/14. The P60 correctly only included the income earned and tax deducted from his employment with S.
In completing his tax return for 2013/14, the appellant erroneously thought that all relevant figures were in the form P60, and he did not consider whether his previous income from A had been included. Following an enquiry into the return, HM Revenue and Customs (HMRC) issued a closure notice to include the appellant’s pay and tax from A, and imposed a penalty of 15% for a careless error. The
