Disruption brought about by Covid-19 was not a reasonable excuse or a special circumstance for a reduction in penalties following the late submission of real-time information returns. 

The appellant company was a real-time information (RTI) employer and was required to make returns. HM Revenue and Customs (HMRC) issued a penalty notice for £100 in relation to a default which occurred in the tax quarter ended 5 July 2019. HMRC issued a further penalty notice on 15 November 2019 for £300 for defaults which occurred during the tax quarter ended 5 October 2019. The appellant appealed. 

The appellant’s grounds for appeal were: (1) They made irregular payments to employees, one of whom was full-time and one part-time/casual; (2) They had been trading for ten years and had not previously incurred such