The taxpayer appealed against late filing penalties imposed in relation to the 21 CIS returns for the months 5 May 2007 to 5 February 2009.

The returns for the period 6 May 2007 to 5 April 2008 were not received until 2 September 2008 and those for 5 May 2008 to 5 January 2009 until 10 February 2009. As a result a total of 150 fixed penalties were issued for the late returns totaling £17,600. The taxpayer argued that the penalties were disproportionate given that all the tax had been paid.

The tribunal dismissed the appeal stating that the absence of financial loss by HMRC was not relevant and could not be classed as a reasonable excuse. Likewise, proportionality was not a relevant issue when looking at the question of reasonable excuse and it was not a matter upon which the tribunal could adjudicate.

The full text of the judgment is available at http://www.bailii.org/uk/cases/UKFTT/TC/2010/TC00391.html