Victory in the first skirmish of what I expect will be a long battle - but who knows? It might be all over by Christmas!
After a three-month delay while they considered their position, a letter from HMRC tells me that I do not need to send in Income Tax Self Assessment forms and they have canceled all penalties. They had previously told me that I must pay a penalty unless I have a reasonable excuse for not submitting the forms. This was a legal requirement that must be met. They have now simply canceled the penalty without any evidence of my income.
The only reason I have offered for not sending in the forms is that I dispute their authority in Shetland. It seems I am no longer required to submit these forms, so I assume they must have come round to my point of view.
It seems that bending the law a little and letting me off the penalty is preferable to having to explain how they get their purported authority, which is what will happen if they continue to pursue me.
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