In Bennedy’s Developments Ltd v HMRC [2021] UKFTT 21 (TC) (27 January 2021) daily penalties were removed because of a lack of valid notice.
The taxpayer should have filed an annual tax on enveloped dwellings return for 2018/19. The deadline was 30 April 2018 but the taxpayer failed to make a return until nearly 11 months later when its adviser made the taxpayer aware of its obligation. No tax was due.
HMRC imposed penalties and the taxpayer appealed against the daily penalties and six-month late filing penalty. As well as saying HMRC had no right to impose penalties and they were in any event disproportionate given there was no loss of tax the taxpayer said it had acted in good faith it had not gained from the late filing it paid the penalty promptly and HMRC had not had to chase it for the return.
The...
