The taxpayer’s misinterpretation of a letter from HMRC about filing tax returns, and caring responsibilities for his disabled son, did not constitute reasonable excuses for his failure to notify liability to tax on property rental income.  

The appellant had completed self-assessment returns for tax years up to and including 2015/16 except 2005/06, 2006/07, 2007/08, and 2008/09. Following an enquiry into property income received by the appellant, HM Revenue and Customs (HMRC) issued tax calculations, and penalties for his failure to notify liability for the tax years 2016/17 to 2020/21 inclusive (under FA 2008, Sch 41). The appellant appealed against the penalties. 

The First-tier Tribunal (FTT) considered whether the appellant had a reasonable excuse for his failure to notify liability and noted the guidance in Perrin v HMRC [2018] UKUT 156 (TCC) on the approach in establishing whether there was a ‘reasonable excuse’.