(1)        a penalty of £149, imposed on 26 June 2012, for the late payment of income tax due on self-assessment for the year 2010-11 and

(2)        a penalty of £100, imposed on 29 May 2012, for the late filing of the return for the year 2010-11.

The issues

6.           Mr Ellis seeks permission to appeal out of time.

Out of time appeal

The Law

13.        The paragraphs below provide a summary of the relevant law. Details of the applicable legislation and relevant case law are set out in the Appendix.

Penalty for late submission of the return

Penalty for late payment of tax

15.        A first late payment penalty of five per cent of the outstanding tax due is payable if the tax remains unpaid 30 days after the due date. In this case the tax was due on 09 May 2012 and the trigger date for the imposition of the first penalty was 09 June 2012. (Paragraph 3 (2) Schedule 56 FA)

Reasonable excuse

16.        The Tribunal has the power to allow an appeal against a penalty if there is a reasonable excuse for the late payment.

The facts

The agreed facts

18.        Mr Goodall had filed Self assessment returns in the previous tax years. However he was made bankrupt and was consequently issued with a new unique tax reference number (“UTR”). HMRC allocated a new UTR to Mr Goodall’s account on 24 January 2012.

The Contested facts

(a)   The appellant’s case

22.        Mr Ellis states that that he was in a position to file his client’s return from November 2011 onwards. However he was unable to file the return or pay the tax due as he did not receive the updated UTR from HMRC until June 2012, despite repeated requests.

Mr Ellis HMRC rang re Mr Goodall’s UTR. They do not have him as an ST so are getting this sorted.

(b)   The Respondent’s case

CALB agent who advised 6 4-8 sent as TP com’d s/e 1/4/10 advised set up post. BY ..UTR…

The Arguments

Findings

Findings of fact

(1)        this is not clearly stated in the note and

(2)        this interpretation is contradicted by the evidence of Mr Ellis and his telephone note dated 09 February 2012

Reasonable excuse

Decision

Right of appeal

38.        This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party.  The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.

JOANNA LYONS

TRIBUNAL JUDGE

RELEASE DATE: 20 December 2013

Appendix

Liability for late filing penalty

Late submission of the return

Section 8 (1) Taxes Management Act 1970 (“TMA”) provides that “a taxpayer may be required by notice to “make and deliver on or before the day mentioned …a return”.

Section 8 (1A) (b) TMA provides that “where the notice ..[to file the return] is given after the 31^st of October next following the year..[the return is due on] the last day of the period of three months beginning with the day on which the notice was given”.

Paragraph 3 Schedule 55 Finance Act 2009 (“FA”) provides that a taxpayer who files a return after the due date is liable to a penalty of £100.

Liability for late payment penalties

Section 59B (3) TMA provides that the outstanding tax due on self assessment is payable “at the end of the period of three months beginning with the day on which the notice under Section 8 ..was given”.

Paragraph (1) (1) Schedule 56 FA provides that “a penalty is payable by a person where he fails to pay an amount of tax payable 30 days after the [due] date”.

Paragraph 3(2) Schedule 56 FA provides “a person is liable to a penalty of five per cent of the unpaid tax”.

Reasonable excuse

Paragraph 16 FA provides that “Liability to a penalty does not arise … if the person satisfies the Tribunal that there is a reasonable excuse for the failure”.