An upper tier tax tribunal has overturned a lower tribunal decision in which the original judge criticised HMRC for using the PAYE penalty system as “cash generating scheme”.
The tax department’s successful appeal  UKUT 363 (TCC) against last year’s HOK v HMRC decision represents an important counterweight for the views of tribunal judge Geraint Jones QC, who appeared to have redrawn the rules around the fairness of tax penalties in the last year or so.
Jones found it “inexplicable why HMRC deliberately delays sending out a penalty notice for four months” so that penalties amounting to £400 built up for companies that were not aware of their filing lapses until notified in September, four months after the 19 May deadline. Becau...
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.