HMRC had served valid tax return filing notices even though the amount of tax due from the taxpayer was already known, and a reduction in late filing penalties for special circumstances was not applicable because the taxpayer’s appeal was against quantum and not liability. 

HM Revenue and Customs (HMRC) sent tax calculations (forms P800) to the taxpayer (DG) for 2011/12 and 2012/13 in September 2012 and August 2013 respectively. The form P800 for 2011/12 showed a tax underpayment of £624.60, and form P800 for 2012/13 showed an underpayment of £289.80. No notice of liability was given by DG under TMA 1970, s 7 for either tax year. 

Tax for both years remained unpaid. In March 2014, HMRC issued DG with a notice to file a tax return for 2012/13 (filing date 27 June 2014). In May 2014, HMRC entered DG’s details on its self-assessment computer system.