In a recent tax case the taxpayer failed to file a tax return on time. The tax payer tried to file on time but failed to obtain an electronic user ID and password from HMRC in time. Instead they filed a paper tax return which was more than six months late by then. HMRC charged penalties totaling £1,300. The court held that the fact that the taxpayer had never intended to file a paper return and had done so only because he was unable to file an electronic return by the deadline was found to constitute a ‘reasonable excuse’ for not filing by 31 January 2014.
The tribunal allowed taxpayer’s appeal.