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Late filing penalties were proportionate even though no tax was due

By Mark McLaughlin, August 2019

Late filing penalties were not disproportionate in respect of self-assessment returns for tax years for which no tax was ultimately due, so such a circumstance could not be a special circumstance when considering whether a reduction in the penalties was justified. 

The appellant was charged penalties by HM Revenue and Customs (HMRC) for the late filing of his self-assessment returns for the tax years 2010/11, 2012/13 and 2013/14 (under FA 2009, Sch 55). HMRC’s calculations for the tax years in question showed that no tax was due for any of those years. 

The First-tier Tribunal (FTT) dismissed the appellant’s appeal against the penalties. The appellant appealed to the Upper Tribunal (UT). His grounds of appeal were: (1) The FTT was not entitled to find as a fact that notices to file were sent to him so HMRC had not discharged their burden of demonstrating that

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