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The taxpayer claimed she had reasonable excuse for paying late tax in respect of 2008/09.
She explained she had been through an acrimonious divorce, had health problems, and suffered a family bereavement in the period.
In addition, her company from which she derived all her income had been in severe financial difficulties. She was trying to sell the business, but was prevented from doing so as a result of conditions imposed by her bank.
The business went into administration in March 2010, and it was sold in November the same year.
The First-tier Tribunal decided the decision of the bank to insist on imposing high charges and preventing the sale of the business, followed by the administrators terminating her employment, were out of the taxpayer’s control.
She had behaved as a reasonable business person throughout. The tribunal concluded she had reasonable excuse for paying her tax late.
The taxpayer’s appeal was allowed.
