RPM (A Partnership) v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty)

INCOME TAX � partnership return � submitted late � late filing penalty and daily penalty � problems with agent authorisation � no UTR � whether reasonable excuse � no � no submissions from HMRC on daily penalty � appeal upheld in part

The Tribunal determined the appeal on 27 June 2018 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 10 January 2018 (with enclosures) and HMRC�s Statement of Case (with enclosures) acknowledged by the Tribunal on 16 March 2018.

This is an appeal against late filing penalties in respect of a partnership return for the tax year 2015/16, being a late filing penalty of �100 and a daily penalty of �170. These penalties are payable by each of the relevant partners in the partnership (para 25, Schedule 55 Finance Act (FA) 2009). An appeal by the nominated partner against the penalties is treated as a composite appeal on behalf of all of the relevant partners in respect of each of their liabilities to penalties (para 20, Schedule 55 FA 2009).

The appeal document refers to the amount under appeal being �440, made up of the �100 late filing penalty and two amounts of daily penalties of �170, one for each partner. As noted above, an appeal by the nominated partner is treated as a composite appeal by all of the partners against the penalties issued to them and so this decision will refer to the late filing penalty and the daily penalty in the singular rather than in respect of each separate partner.

The SA400 (registration of partnership form) for the RPM partnership was received by HMRC on 16 March 2017. The partnership was stated to have a commencement date of 1 August 2015.