In the case of HMRC v Wals [2026] UKFTT 621 (TC), following a review, the FTT has revised its earlier decision (see the Claritax News story) and allowed the appeal against late filing penalties in respect of voluntary income tax self-assessment returns submitted for a number of years of assessment.
INCOME TAX – penalties for late filing – no s8 Notice to file served on appellant – voluntary returns – filing date deemed to be date returns made – not late – appeal allowed
On his arrival from Holland, Mr Wals had engaged an accountant, Mr Smith, to submit voluntary returns on his behalf, but HMRC argued that these had been submitted late and imposed penalties. Mr Wals appealed to the FTT, but with the exception of the first penalty for the earliest year, the FTT dismissed the appeal. Following a request for an appeal, the FTT reviewed the decision under Rule 41 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 on the grounds that the FTT had made an error in law.
The FTT concluded that:
“We find as a fact that no notices to file were actually served on the appellant in respect of any of the years in question.
Section 87 of the Finance Act 2019 introduced section 12D TMA which applies to returns made otherwise than pursuant to a notice to file (in other words voluntary returns). Under this section, a voluntary return is treated as having been made in response to a valid notice to file even if, as a matter of fact, no such notice was served on the appellant.
This change in legislation has both prospective and retrospective effect subject to certain exclusions, none of which are relevant to the appellant’s circumstances.
Under this section, a relevant notice to file is deemed to have been given to a taxpayer on the day that the relevant return was delivered.”
Having judged that the deemed notice to file was made on the same date as the actual date of submission, the FTT identified the notice to file date for each relevant tax year and applied the normal rules to determine the filing deadline, which in all cases was three months after the date of the notice. The FTT therefore concluded that:
“So the date on which the returns were due to be submitted was 3 months after the date on which the notices were deemed to have been given, which in turn was the date on which each return was actually submitted.
It was not possible, therefore, on the facts of this case, for the returns to have been submitted late, and we find that none of them were submitted late.
Given that the returns were not submitted late, schedule 55 is of no application. …
… We therefore allow the appellant’s appeal against the penalties.”
https://caselaw.nationalarchives.gov.uk/ukftt/tc/2026/621
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