Illness is an excuse

The taxpayer was a sole trader who ran a franchised carpet cleaning business. Towards the end of 2008 his business suffered a downturn going from a turnover of around £30 000 a month to £4 000.

He began to drink heavily and was unable to meet his liabilities despite re-mortgaging his house. In November 2009 he asked his brother who lived some distance away for help.

The taxpayer was in denial about his alcoholism; he was also suffering from ulcers. When the brother arrived he found unopened mail that included a  demand for outstanding tax. He contacted HMRC and eventually was able to arrange a time-to-pay agreement.

The brother appealed on behalf of the taxpayer against the surcharge for late payment of tax on the basis that his brother had suffered a serious illness during the period in which he...