Pickquick Carriers Ltd v Commissioners for Her Majesty's Revenue and Customs

Facts

The appellant, Pickquick Carriers Ltd, had previously traded as Pickwick Carriers before being purchased by Pickwick Carriers Limited on 31 July 2009. It employed a book-keeper on whom it relied to make its tax returns. Its online employer's annual return (form P35) for the 2009–2010 tax period fell due on 19 May 2010 but was not filed until 2 December 2010. On 27 September 2010 HMRC issued a penalty notice under section 98A(2)(a) of the Taxes Management Act 1970 in the sum of £400, covering the four months from 19 May to 19 September 2010. The appellant appealed, contending that it had a reasonable excuse under section 118(2) of the Taxes Management Act 1970: this was the first occasion on which it had been required to file the P35 online, and its book-keeper had notified it that the return had been filed, so that it remained unaware of the default until the penalty notice arrived. It further contended that the penalty was disproportionate, given that the tax due for the period was a modest £3,750.95 and had been paid on time. HMRC maintained that responsibility for timely filing rests with the taxpayer, that an agent's failure does not displace it, and that they are under no obligation to issue reminders. The First-tier Tribunal determined the appeal on the papers under rule 26 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009.