The year 2011 saw the First-tier Tribunal severely criticising HMRC for running a ‘cash generating scheme’ by issuing P35 filing penalty notices after waiting for 6 months in September. HOK Ltd v HMRC [2011] UKFTT 433 (TC01286) was one of several cases where the tribunal judge allowed the appeal against late P35 filing penalties. There were also other cases resulting in similar decisions notably the HMD Response International one where HMRC’s interpretation of reasonable excuse was completely at odds with that of the tribunal.
Now that HMRC has confirmed that it would be appealing against the tribunal decision in the case of HOK Ltd, it would be really interesting to see where HMRC is going to base its arguments on a question of law.
