In HMRC v Duncan Hansard [2019] UKUT 391 the UT found that the FTT had erred in law in declaring late filing penalties invalid. However it also cancelled the majority of the penalties in this case on the basis that they had not in fact been notified to this taxpayer.
HMRC had charged Mr Hansard late filing and late payment penalties for late tax returns. The point of interest related to the penalties arising under FA 2009 Sch 55 para 5 and 6 which provide that the taxpayer is liable to a penalty of the greater of £300 and 5% of the tax that would have been shown on the return. Clearly this penalty can be issued before the return is made and therefore before HMRC can be certain of the tax that is due and so Sch 55 para 24 gives HMRC the...
