Mansoor
| Jurisdiction | UK Non-devolved |
| Judgment Date | 31 May 2018 |
| Neutral Citation | [2018] UKFTT 288 (TC) |
| Date | 31 May 2018 |
| Court | First Tier Tribunal (Tax Chamber) |
[2018] UKFTT 0288 (TC)
Judge Gething, Member Mr Ian Menzies-Conacher
Income tax – Penalties for failure to file self assessment returns – Notices to file issued to collect tax – TMA 1970, s. 8 not satisfied – Appeals allowed.
Income tax – TMA 1970, s. 8 – R (on the application of Lumba) v Secretary of State for the Home Department [2012] 1 AC 245 – Padfield v Minister of Agriculture, Fisheries and Food [1968] AC 997.
The appellant concerns the issue of notices to file self-assessment in order to collect tax that would have otherwise been collected from an employer. The First-tier Tribunal (FTT) allowed the Appellants appeal in full.
The appeal was against penalties for failure to file a self-assessment return in respect of the tax years 2010/11 to 2014/15. The Appellant was employed for each of the years with the same employer. The Appellant received communication from HMRC in March 2016 and returns were then quickly prepared. HMRC had not pursued the Appellant's employer for any under deduction.
The appeal was allowed in full and penalties reduced to zero.
The appeals were allowed because the issue of notices was invalid. A notice to require a taxpayer to file a return may be issued under TMA 1970, s. 8(1) only for establishing the amount of income tax and capital gains tax owed by a taxpayer. The FTT confirmed that a notice cannot be issued for collecting amounts of income tax of which HMRC are already aware.
This case reflects what has been seen in practice – HMRC's more aggressive approach to collect tax. The case is an important reminder of the limitations that HMRC have when issuing SATRs.
[1] The appeal is against penalties claimed by HMRC for failure to file a self-assessment return in respect of the tax years 10/11, 11/12, 13/14 and 14/15 (“HMRC's purported penalty assessments”). HMRC claim an aggregate amount of penalties for failure to file the returns by the due date of £5,500 which represents in each of the years 10/11, 11/12 and 13/14:
- £100 fixed penalty for failure to file by the due date;
- £900 daily penalty of £10 per day for 90 days;
- £300 six month late filing penalty; and
- £300 twelve month late filing penalty.
A total of £1,600 per year.
[2] The penalties imposed in respect of 2014/15 are:
- £100 late filing penalty; and
- £600 daily penalty of £10 for 60 days.
A total of £700.
[3] For the reasons set out below we allow the appeal in full and reduce the penalties to zero.
[4] The facts were as follows:
- Mr Mansoor...
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Griffiths
...was therefore allowed. Comment This decision expressly the decisions in Goldsmith [2018] TC 06284, Lennon [2018] TC 06453 and Mansoor [2018] TC 06518. The main issue addressed by those decisions is whether or not the FTT has the jurisdiction to consider the validity of a notice to file when......
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Hurst
...[2018] TC 06453. The FTT noted that similar conclusions to those in Goldsmith were reached in Griffiths [2018] TC 06697 and Mansoor [2018] TC 06518. But on the other hand, in Crawford [2018] TC 06594, the FTT disagreed with Goldsmith. The FTT instead held that the words “for the purpose of ......
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Hurst
...of what was decided in those cases. [10] The Decision noted that Goldsmith, Lennon and Groves, as well as additional cases, Mansoor [2018] TC 06518 and Griffiths [2018] TC 06697, all reached similar conclusions. The Decision took into account that there was one case that reached a contrary ......