Key Facts
- •Shadi Fardjadnia (Appellant) appealed penalties for late filing of a self-assessment tax return for the tax year ending 5 April 2022.
- •Penalties totaled £1300: £100 initial penalty, £900 daily penalty, and £300 6-month penalty.
- •HMRC claimed the return was filed on 12 October 2023, 254 days late, without reasonable excuse or special circumstances.
- •Appellant argued a technical/system error prevented timely recording of the return filed near the deadline.
- •Appellant cited anxiety and unfamiliarity with the UK tax system as contributing factors to the delay.
Legal Principles
Penalties for late filing of tax returns are governed by Schedule 55, Finance Act 2009.
Schedule 55, Finance Act 2009
A 'reasonable excuse' for late filing negates penalty liability (Schedule 55, paragraph 23).
Schedule 55, paragraph 23, Finance Act 2009
'Special circumstances' may warrant penalty reduction (Schedule 55, paragraph 16).
Schedule 55, paragraph 16, Finance Act 2009
The Upper Tribunal's approach in *Christine Perrin v HMRC* [2018] UKUT 0156 guides 'reasonable excuse' assessment.
Christine Perrin v HMRC [2018] UKUT 0156
The Upper Tribunal's decision in *Barry Edwards v HMRC* [2019] UKUT 131 clarifies 'special circumstances'.
Barry Edwards v HMRC [2019] UKUT 131
The Tribunal lacks inherent supervisory jurisdiction to review penalty reasonableness generally.
Hok Ltd v HMRC [2012] UKUT 363; Abdul Noor v HMRC [2013] UKUT 71
Fairness requires a party to challenge evidence it wishes to impugn through cross-examination (*Tui UK Ltd v Griffiths* [2023] UKSC 48).
Tui UK Ltd v Griffiths [2023] UKSC 48
Outcomes
Appeal dismissed.
The Tribunal found the Appellant did not file the return before the deadline due to failure to include self-employment income, not a technical error. Her claimed reasonable excuse (unawareness due to anxiety and a mistaken belief she filed on time) and special circumstances were not deemed sufficient to negate the penalties.