HMRC’s decision not to suspend a penalty for a careless error in the appellant’s tax return was not flawed.
The appellant, a company director shareholder and employee, omitted pay and tax from the company in his tax return for 2012/13, resulting in a tax underpayment.
HM Revenue and Customs (HMRC) opened an enquiry into the return, and subsequently issued a penalty assessment (under FA 2007, Sch 24) on the basis that the appellant’s error was ‘careless’.
The appellant’s agents accepted responsibility for the error in his tax return, and suggested conditions for the penalty to be suspended (under Sch 24, para 14). Those conditions included: maintaining all documentation relating to his PAYE employment, including payslips, form P60 and if applicable form P11D; the appellant would maintain a separate record of his annual pay and tax deductions; all documentation
