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The appellant appealed against HMRC’s cancellation of registration for gross payment. The Revenue said the taxpayer had failed to meet the compliance test in two specific areas, with one payment 322 days late and a second 189 days late.
The appellant argued he had done all that he could to avoid paying late. However, insufficiency of funds had prevented the payment within the deadline. He believed it was an injustice to remove his gross payment status on the unfair assumption that he would foresee future compliance failures.
The tribunal agreed that the appellant did have a reasonable excuse within the meaning of FA 2004, Sch 11 para 4 for failing the compliance test, and that there was no reason to expect post-qualifying period non-compliance.
The taxpayer’s appeal was allowed.
