08 June 2023

Peter Marano -and- Commissioners for HM Revenue & Customs

In Peter Marano v HMRC, the Upper Tribunal found that the effect of s103 Finance Act 2020 was that a notice sent by HMRC using an automated process was valid. It had previously come to a similar conclusion in Allam v HMRC. The UT also considered the requirements for notification of a penalty and found that a late filing penalty ought not to be calculated by reference to the tax which had already been paid. It also concluded that the early payment of tax was a “special circumstance” which could be taken into account when deciding whether to reduce the penalty and remitted the appeal to the FTT to determine whether the penalty should therefore be reduced.

Sadiya Choudhury acted for HMRC.

To view a copy of the decision please click here