G E Hayhurst and J Hayhurst Partnership & Ors v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty)

Income tax - s 93 TMA 1970 and Schedule 55 Finance Act 2009 - fixed and daily penalties for failure to file partnership and individual self-assessment returns on time - appeals out of time for years before 2009-10 � application for permission to appeal refused - appeals for 2010-11 and 2011-12 not opposed by HMRC - grounds of appeal that HMRC advice misled Appellants to understand that s 93(7) TMA capped penalties where no tax liability - whether reasonable excuse - yes - appeal allowed

Sitting in public at Tax Appeals Tribunal, Alexandra House, The Parsonage, Manchester on 26 January 2018

This is an appeal by G E & J Hayhurst Partnership and also the partners, Graham Hayhurst, Judith Hayhurst and James Hayhurst �(�the Appellants�) against penalties imposed by the Respondents (�HMRC�) under s 93 Taxes Management Act 1970 for the tax years, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10; and under Paragraphs 3,4 and 5 of Schedule 55 Finance Act 2009, for the failure to file partnership returns and individual self-assessment returns on time, for the tax years ending 2010-11 and 2011-12..

The appeals in respect of the years 2005-6 to 2009-10, were made outside the statutory time limits and therefore the Appellants apply for leave to appeal out of time.

HMRC oppose the Appellants� application to appeal against penalties for 2005-06 to 2009-10, because the appeals range from over six years to over one year late. HMRC do not oppose the Appellants� application to appeal against the late filing penalties for the years 2010-11 and 2011-12, although these were also made outside the statutory time limit.