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First-tier Tribunal could cancel penalty assessments not properly issued

By Mark McLaughlin, March 2020

HMRC’s calculations of late filing and late payment penalties were correct, but the First-tier Tribunal (FTT) was entitled to cancel some of the penalties because they were not properly issued. 

Background 

The respondent (DH) submitted his self-assessment return for the tax year 2010/11 in paper form on 23 April 2013. The filing deadline was 31 October 2011. The due date for payment of the 2010/11 tax liability was 31 January 2012, but DH did not pay his liability until 22 May 2013. The date for the 2011/12 tax liability was 31 January 2013, but DH did not pay that tax until 22 May 2013. 

In August 2012, HM Revenue and Customs (HMRC) assessed an initial penalty of £300 on the basis that DH’s return for 2010/11 was over six months late. The penalty of £300 was the lowest amount permitted by

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