In a recent case brought to the tribunal, a taxpayer, Mr Hammant, was liable for penalties of £1,200 despite no tax being owed to HMRC.
Mr Hammant filed his Self Assessment tax return online however the submission had not completed correctly which he did not discover until over a year later.
He was signed up for paperless communication with HMRC but did not check his personal tax account and did not see the penalty notifications, statements and reminders for the late filing of his tax return. Despite acting quickly once he discovered the issue and making an appeal for the late filing penalties of £1,200, HMRC did not consider this to be a reasonable excuse and neither did the tribunal. Mr Hammant was required to pay the penalties.
So, what were the issues here?
The taxpayer did not receive any correspondence in the post as he had signed up for paperless correspondence. When issuing paperless correspondence to a taxpayer, HMRC should send a notification to the taxpayer on their registered email however, Mr Hammant did not notice these messages.
The taxpayer assumed that his tax return had filed correctly once he had submitted it online and did not check his tax account again for a long time.
This recent case is a reminder that the responsibility for the correct filing of a tax return is on the taxpayer and it is not up to HMRC to ensure that this is submitted correctly or on time.
There are only a few circumstances where HMRC would remove penalties for the late filing of tax returns and this is usually only in extreme circumstances.
Despite no tax being owed, Mr Hammant was liable to substantial penalties. This shows the importance of being aware of your filing requirements and making sure you meet the deadlines.
For assistance with filing your Self Assessment tax return, please contact our team of experts who would be more than happy to assist you.