HAmbleton play grOUP v Revenue & Customs

Return Form P35 � late filing penalty � appeal lodged over two years after first penalty notice � change of personnel � late appeal allowed - �reasonable excuse for delay � two subsequent returns filed before due date and before late Return filed� appeal rejected as no reasonable excuse for extended delay

The Tribunal determined the appeal on 29 July 2014 without a hearing under the provisions of Rule 26 of the Tribunal Procedure (First-tier Tribunal)(Tax Chamber) Rules 2009 (default paper cases) having first read the Notice of Appeal dated 26 April 2014 (with enclosures) and� HMRC�s Statement of Case submitted on 3 June 2014 (with enclosures).

This is an appeal by Hambleton Play Group (Hambleton) against penalties of �370.00 imposed under Section 98A (2) and (3) Taxes Management Act 1970 for the late filing of the Employer�s Annual Return P35 for the 2010/11 tax year.

On 13 February 2011 HMRC sent Hambleton an electronic notification to file a P35N. On 26 September 2011 HMRC issued a late filing penalty notice for �400.00 for the period 20 May 2011 to 19 September 2011. A further late filing penalty notice was issued on 30 January 2012 for �400.00 for the period 20 September 2011 to 19 January 2012. A third late filing penalty notice was issued on 28 May 2012 for �400.00 for the period 20 January 2012 to 19 May 2012.

The Return Form P35 was filed electronically on 18 February 2014. Where the total duty shown on the return is more than �100.00 but less than the penalty amount Hambleton is only liable to penalties in an amount equal to the total duty shown. Accordingly on 31 March 2014 the penalties were reduced to �370.00.