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Professional clearance and HMRC delays were reasonable excuses for late filing of tax return

By Mark McLaughlin, October 2019

Delays in filing the appellant’s tax return caused by delays in his previous agent giving professional clearance to his new agent and the time taken by HMRC in providing information to the new agent constituted a reasonable excuse for penalty purposes.  
 
The appellant’s self-assessment return for the tax year 2015/16 was filed electronically on 21 September 2017. The due date for the return was by 31 January 2017. HM Revenue and Customs (HMRC) issued late filing penalties (under FA 2009, Sch 55) of £100, £900, and £300. The appellant appealed (although not in respect of the initial £100 penalty). 
 
The appellant argued that his previous agent had been unable to file his tax return because there were no supporting records for the appellant’s construction industry scheme (CIS) sub-contract work, despite numerous requests having been made to the contractor. The

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