Sarah Godliman v The Commissioners for HMRC
Decision date: 16 January 2024
Neutral citation: [2024] UKFTT 81 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal challenged Schedule 55 penalties (£700 each) for late 2017–18 and 2018–19 self‑assessment returns filed in October 2021. The Tribunal found the returns disclosed both employment and self‑employment income, the appellant gave no reasonable excuse or evidence of attempts to correct matters, and there were no special circumstances to reduce penalties. The appeal was dismissed and the penalties confirmed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
Where a taxpayer files returns that disclose self‑employment income, does not challenge or correct HMRC correspondence or placement in self‑assessment, and offers no evidence of attempts to comply, they will not establish a reasonable excuse for late filing under Schedule 55; accordingly HMRC may require a return and penalties may be upheld.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted that HMRC is entitled to require a tax return to satisfy itself that no tax is due and that failure to engage with HMRC after notices (or to provide evidence of attempts to correct) undermines claims of mistaken placement in self‑assessment.