Matthew Atkin v The Commissioners for HMRC
[2024] UKFTT 786 (TC)
Jit Panesar v The Commissioners for HMRC
15 May 2024
[2024] UKFTT 412 (TC)
First-tier Tribunal
A man didn't file his taxes on time in 2013 and only tried to appeal eight years later. The court said he hadn't shown a good reason for the delay, even though he claimed HMRC's website crashed and he didn't see the penalty notices because he was abroad. They ruled he should have checked to make sure his return was filed correctly and should have paid attention to the penalty notices. He lost his appeal.
Key Facts
- •Mr. Jit Panesar appealed against late filing penalties for his 2013 income tax return, received by HMRC on October 31, 2022, more than 8 years late.
- •HMRC assessed penalties totaling £1,600.
- •The appeal was submitted on July 11, 2022, significantly after the penalty notices issued in 2014 and 2015.
- •Mr. Panesar claimed he submitted the return online on January 31, 2014, but due to HMRC website crashes, it was lost. He also claimed unawareness of the penalties until May 2022.
- •Mr. Panesar was in Cyprus from early 2014 to 2017 and did not leave a forwarding address.
Legal Principles
Late filing penalties for income tax returns are governed by Section 8 of the Taxes Management Act 1970 and Schedule 55 of the Finance Act 2009.
Taxes Management Act 1970; Finance Act 2009
The tribunal has discretion to admit late appeals, guided by the principles in *Martland v HMRC* [2018] UKUT 178 (TCC). This involves considering the length of the delay, reasons for the delay, and a balancing exercise of prejudice to both parties.
*Martland v HMRC* [2018] UKUT 178 (TCC)
A taxpayer is not liable for penalties if they have a reasonable excuse for the late filing. This is an objective test considering the taxpayer's circumstances and whether their actions were reasonable for a responsible taxpayer.
*Christine Perrin v HMRC* [2018] UKUT 156; *The Clean Car Co Ltd v C&E Commissioners* [1991] VATTR 234
Outcomes
The appellant's application to make a late appeal was rejected.
The significant delay (over 8 years) in appealing the penalties, coupled with the lack of a demonstrable reasonable excuse for the late filing and the lack of evidence supporting his claim of timely filing, led to the rejection of the late appeal.
The appeal against the penalties would have been dismissed even if the late appeal application had been granted.
The tribunal found the appellant did not have a reasonable excuse for the late filing of his 2012/2013 tax return. His failure to verify the online submission despite website issues and his absence of evidence for timely submission led to this conclusion.