Taxpayer wins appeal against ‘careless’ penalty
A taxpayer has won an appeal against a careless inaccuracy penalty for omitting information about his employment income in his online tax return. His argument was that HMRC’s online filing software was to blame.
In the case of Andrew Banks v HMRC, the taxpayer was charged a penalty for “careless inaccuracy” after omitting just over £200,000 employment income from two jobs from his online tax return.
When he submitted his return in January 2012 it showed no extra tax due at the end of the year.
Banks appealed against the penalty, arguing that when he completed the forms online it showed no more tax due.
He said that it was not his fault that HMRC’s system had failed to register the details submitted, so he should not be penalised.