HM Revenue and Customs (HMRC) has apologised for fining a homeless man for failing to complete his tax return on time.
Krzysztof Pokorowski, a self-employed electrician, was hit with penalties totalling £1,600 for failing to file his 2014-15 self-assessment tax return by the deadline.
On 6 April 2015, HMRC issued a notice to file a tax return for 2014/15 but this was sent to Mr Pokorowski’s last known address, as well as subsequent penalty notices.
However, what HMRC was unaware of was that from April 2014 until January 2017, Mr Pokorowski slept on the streets, until he was able to find a job and consequently move to permanent accommodation.
At a First Tier Tribunal, HMRC claimed that it was the responsibility of Mr Pokorowski to notify HMRC if he changed his address and said that the “circumstances are not ‘special’ and therefore there are no grounds for a special reduction”.
Krzysztof Pokorowski claimed that as he had lost all his belongings and documents, and as he was homeless, he had a reasonable excuse for failing to file on time.
Judge Aleksander found that Mr Pokorowski had a reasonable excuse and allowed his appeal.
Judge Aleksander said: “HMRC’s decision to pursue Mr Pokorowski for penalties in the circumstances of this appeal is a scandal. For HMRC to expect a homeless person to keep HMRC up-to-date with their address is ridiculous – and just needs to be stated to show its absurdity.
“I also find that HMRC’s decision that there were no “special circumstances” to be flawed – in other words, no reasonable HMRC officer acting reasonably could have reached this decision, and if Mr Pokorowski did not have a reasonable excuse (which eliminated his liability to penalties), I would have reduced the penalties to zero.”
An HMRC spokesperson said: “We are sorry that this case came to court and we apologise to Mr Pokorowski.
“We know that people often need additional help and support from us and we are committed to delivering that while being considerate and sensitive to individuals’ circumstances.”