In Gerrit Wals v HMRC [2026] TC09855, the First Tier Tribunal (FTT) found that late filing penalties could not apply to voluntary Self Assessment tax returns, for which HMRC had not issued a notice to file.
Mr Wals filed his tax returns for the years 2010-11 to 2014-15 between 108 and 638 days after the normal filing dates.
- HMRC charged Late-filing penalties under Schedule 55 of the Finance Act 2009, totalling £4,500.
- Mr Wals Appealed to the First Tier Tribunal (FTT).
The FTT issued its decision in November 2025, in which it found that:
- HMRC had not established that valid Notices to file tax returns had been served on Mr Wals.
- The fact that Mr Wals had filed returns was insufficient: they could have been voluntary returns and not submitted in response to a notice to file.
- The fact that HMRC had not demonstrated that valid notices to file had been served on Mr Wals did not, however, invalidate any late filing penalties.
- While Mr Wals had a Reasonable excuse in relation to the £100 initial 2010-11 late filing penalty, he had no reasonable excuse in relation to the other penalties.
Mr Wals sought permission to appeal to the Upper Tribunal (UT), arguing that because it was found that no valid notices to file were served on him, his returns were voluntary. The filing date was therefore the date of submission. As such, his returns were not late.
In his application, Mr Wals asked the FTT to review its previous decision to consider this ground of appeal. The FTT obliged, setting aside its original decision and finding that:
- No notices to file were served on Mr Wals for any of the years in question.
- Finance Act 2019 introduced s.12D TMA 1970, which applies to returns made otherwise than pursuant to a notice to file (i.e. voluntary returns).
- S.12D has both prospective and retrospective effect, subject to certain exclusions, none of which applied in this case.
- Under s.12D, a voluntary return is treated as having been made in response to a valid notice to file.
- This notice to file is deemed to have been given on the day that the relevant return was delivered.
- Where a notice to file a return has not been served by 31 October following the end of the tax year, a taxpayer has three months from the date of the notice to file to submit their return.
- All of Mr Wals’ returns were submitted after 31 October, following the end of the tax year. This meant that:
- The returns were due to be submitted three months after the date on which the notices were deemed to have been given.
- The notices were deemed to have been given on the date that each tax return was received.
It was therefore not possible for the returns to have been submitted late, and as such, late-filing penalties could not apply.
The appeal was allowed.
Useful guides on this topic
Notice to file a tax return: section 8(1) TMA 1970
A guide to explain the implications of a notice sent to an individual under s.8(1) TMA 1970 to file a tax return.
Adviser's Tax Penalty Planner
A guide to the key direct and indirect tax penalty regimes for returns and payments, excluding VAT.
Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer appeals against a tax compliance failure?
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