Andrew Newall v The Commissioners for HMRC
[2024] UKFTT 47 (TC)
Qasim Latif v The Commissioners for HMRC
27 March 2024
[2024] UKFTT 277 (TC)
First-tier Tribunal
A man didn't pay taxes on his child benefit because he didn't know he had to. The tax office sent him a reminder, but he didn't act. The court said he should have, and he has to pay the back taxes and penalties.
Key Facts
- •Mr. Latif appealed discovery assessments totaling £17,887 and penalty assessments totaling £3,327 for HICBC for tax years 2012-13 to 2019-20.
- •Mr. Latif did not file self-assessment returns and was unaware of the HICBC until receiving a nudge letter in November 2019.
- •A dispute arose regarding the authenticity and content of a letter Mr. Latif sent to HMRC on May 14, 2021.
- •HMRC initially decided not to defend the appeal based on a shorter, altered version of the letter, but later reversed their decision upon finding the original.
- •The Tribunal found that the discovery assessments were made within the time limits and that Mr. Latif did not have a reasonable excuse for his failure to notify.
Legal Principles
Discovery assessments under section 29 of the Taxes Management Act 1970 (TMA 1970)
Taxes Management Act 1970
Penalties for failure to notify under Schedule 41 to the Finance Act 2008 (FA 2008)
Finance Act 2008
Reasonable excuse for failure to notify under TMA 1970, s 118(2)
Taxes Management Act 1970
Time limits for raising discovery assessments under TMA 1970, s 34 and s 36
Taxes Management Act 1970
Effect of Finance Act 2022, s 97 on discovery assessments relating to HICBC
Finance Act 2022
Outcomes
Appeal dismissed
The discovery assessments were validly issued within the time limits, and Mr. Latif did not have a reasonable excuse for his failure to notify. The penalty assessments were also validly issued.