S Duncan v HMRC

In S Duncan v HMRC [2018] UKFTT 296 (6 June 2018) the FTT upheld a penalty imposed for non-compliance with an information notice (FA 2008 Sch 36).

Ms Duncan owned and let properties. HMRC became aware of her letting business and realised that she had not filed self-assessment returns. HMRC’s Income Tax Self Assessment (ITSA) enquiry unit therefore sent her a letter asking for information. Ms Duncan then completed Form SA1 to register for self-assessment but she did not respond to the ITSA’s letter and HMRC issued an information notice. Ms Duncan eventually filed voluntary self-assessment returns in relation to the relevant years.

HMRC issued a penalty for failure to comply with the notice. Ms Duncan submitted that HMRC’s powers to issue information notices were subordinate to their enquiry powers so that once a return had been filed HMRC should open an enquiry under TMA 1970 s 9A....