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HMRC’s decision to impose late payment penalties was flawed

By Mark McLaughlin, August 2024

It was not appropriate for HMRC to impose late payment penalties in the circumstances of the case, and HMRC’s decision to do so was flawed. 

In June 2023, HMRC sent the appellant a notice to complete a self-assessment return for the tax year 2021/22 by post. The filing date for the return was 29 September 2023. On 23 June 2023, the appellant enrolled for self-assessment. He had signed up to receive paperless communications on 19 April 2021, and communications following the paper notice were consequently made electronically. An electronic return for 2021/22 was filed by the appellant on 31 August 2023, indicating that income tax was due for 2021/22.  

The tax for 2021/22 was due on 31 January 2023. It was paid 232 days late (on 20 September 2023). On 5 September 2023, 30-day and six-month late payment penalty notices were served on the appellant by electronic notification to the appellant’s online tax account. Email alerts

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