Every year, shortly after the 31 January personal tax return filing deadline, the HMRC “late filing penalty” launch begins. Some are valid, many are not, but nearly all will now be automated (ie computer generated).

A recent First Tier Tax Tribunal court case therefore makes for very topical reading. In the case of Khan Properties Limited, the Court held that an automatic determination of penalty for late filing was invalid, as it had not been determined by ‘an officer of the Board’ (namely an officer of HMRC).  Although this case related specifically to corporation tax, its context may be more widely relevant.

If you are the subject of a penalty notice from HMRC in the coming weeks, do not hesitate to ask one of our private client tax team for help.

Richard White, Rugby 01788 539000 or Amy Read 0116 261 0061.