Roy Baker won the argument at the First Tier Tribunal (FTT) after appealing against historic income tax penalties of £34,923.

HMRC issued the penalties under section 208 of Finance Act 2014 (FA 2014), due to ‘his failure to take corrective action’ when he was sent follower notices (FN) under chapter 2 of FA 2014.

Firstly, Baker disputed the 42% penalty for his failure to ‘take corrective action’ on his income tax between 2004-08.

A closure notice was issued on 21 October 2009 under s28A of Tax Management Act 1970 (TMA) for tax years 2004-07. Subsequently a penalty was issued in 2019 and upheld by HMRC on 8 November 2022. Baker’s initial appeal was submitted on 30 October 2009.

Evidence was heard at the FTT from Baker, who represented himself, but HMRC refused to cross-examine the appellant.