Reconsider the facts

The taxpayers were a father and son who worked in partnership in the construction industry. They were obliged to appoint a new accountant when their usual one retired. They had relied on him to tell them when to pay tax; this was not the practice of the new adviser.

Both taxpayers made an interim self assessment tax payment in September rather than by 31 July. As a result HMRC withdrew their gross payment status.

The men appealed saying they were used to being told when and what to pay and claiming they had mislaid and misfiled documents and tax payslips which were later found and forwarded immediately to the accountant and the tax was paid.

The Revenue claimed neither taxpayer had reasonable excuse for late payment. The fact that withdrawing gross payment status would probably cause the partnership to go out of business was...