Key Facts
- •Gareth Bezant appealed late payment penalties (£248) for the 21/22 tax year.
- •Tax was due on 31 January 2023, paid 232 days late on 20 September 2023.
- •Penalty notices were served electronically on 5 September 2023.
- •Bezant received a paper notice on 22 June 2023 stating tax and return were due within 3 months.
- •HMRC used a Regulation 6 certificate to prove electronic service of penalty notices.
- •Bezant argued the paper notice's 3-month deadline justified the late payment.
Legal Principles
Assessment of late payment penalties.
Schedule 56, Finance Act 2009
Notification of late payment penalties and electronic communications.
Schedule 56, Finance Act 2009; Income and Corporation Taxes (Electronic Communications) Regulations 2003
Reasonable excuse for late payment.
Paragraph 16, Schedule 56, Finance Act 2009; Christine Perrin v HMRC [2018] UKUT 0156 (TCC)
Special reduction of penalties.
Paragraph 9, Schedule 56, Finance Act 2009
Evidential requirements for electronic service of notices.
Walker v HMRC [2023] UKFTT 865
Outcomes
Appeal allowed.
HMRC's decision to impose penalties was flawed due to the discrepancy between the paper notice (allowing 3 months from its date for payment) and the proforma notice in the document bundle. This discrepancy constituted special circumstances justifying a reduction under para 9, sch 56 FA 2009, leading to a reduction of penalties to £0.