HMRC late filing penalties: Tribunals want proof
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John Stokdyk sadly passed away in June 2023. He had been with the site since 1999, rising from news editor to editor in chief, global editor and head of insight. As a roving editor, he investigated the profession's use of technology around the world. He devoted his spare time to technology history and an oddball collection of stringed...
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Guilty until proven innocent
............... the judge noted that HMRC provided no evidence to back its claim that the return had been filed late other than asserting that that its computers do not get it wrong and that if there was no record of a P35 on the system, the appellant cannot have been informed that it had been successfully filed.
So, if their computers "do not get it wrong" - how do they explain the example below where their computer claims they received a return on 1st Aug 2009, yet, that it wasnt submitted until 2nd Aug 2009. A time warp perhaps ?
That is quite wierd as
1st august 2009 was a saturday and 2nd was a sunday. So it would appear HMRC worked on the saturday and had to manually change the date when they came in on the monday!!!!!!!!!!!! So anything received on the sunday would show saturday's date.
HMRC Penalties
The report does not say whether the HMRC were stating under oath that their computer systems never gets anything wrong. I'm not sure that the HMRC officer making the statement would be immune from perjury.
Proof of posting
Way back in 1988 I successfully presented TWO appeals before the VAT Tribunals.
One was indeed on "Customs" as it then was, alleging that they had not received the VAT Application Form. I argued that "Customs" did not "recognise" applications via third parties, AND that publicity had been taken out by way of Press Advertising, that "if you haven't heard from us, allow us time, and please do not chase us". OK, so after SIX MONTHS, my client rang me up to say "when do I get my VAT number?" As a result, "Customs"argued "non-receipt" and thereafter lateness. My client's appeal was upheld, and later, perhaps "Customs" changed the law. I still got costs. I was, informally approached by a member of the public, whom I believe, worked for "Customs" to point out how sometimes post got lost behind a radiator. I have to thank my clients, all of whom received a free ABC Accounts Book to keep their records, for excellent co-operation that enabled me to perform such a valued professional service to them. And I'm still in practice - as are the ABC Accounts Books.
Going back
to customs days, it wasn't too long ago that customs got so bogged down with post that they ditched everything and told "customers" to re-apply with no penalties.
top secret
The cocho amstrad fell over late on 30th June. It was striking how this problem was not struck down until the following day when someone ambled past it and gave it a kick. I called coho on 1st July in the morning and, due to my ooozy politeness i am sure, was told to download the accounts template, fill it in, and email it over. The IT boys then did the allegedly impossible and tippexed it on to the record for 30th June as though nothing had gone wrong. £150 narrowly saved.
HMRC late Filling
With the new HMRC late filing penalty being automated escaping the eyes of the taxman would be an ordeal. The longer you leave the filing process the higher is going to be your penalty. HMRC has become much tougher on late payments since the penalty rules were revised on 6 April 2011. Tax payments from 2010/2011 need to be filed on time to avoid penalty. There are several companies providing simple and cost effective iXBRL tagging solutions for filing with HRMC. A full list of ixbrl tagging companies can be found at http://www.hmrc.gov.uk/efiling/ctsoft_dev.htm#3. Companies like Datatracks provide a fixed quote and per page rate. You simply upload your documents through their website and they output the documents in iXBRL format ready for filing.