All too much

The taxpayer appealed against a surcharge for the late payment of her self assessment income tax.

She put forward as reasonable excuse that she had taken a 50% pay cut as a result of the recession; her husband was an alcoholic who had lost his livelihood and been close to a nervous breakdown; the couple had debts of £85 000they were trying to manage; and they had separated leaving her to look after their two children work full-time and control the debt.

She had contacted HMRC in February to discuss time-to-pay but the department took more than a month to respond and it was not until June that an arrangement was agreed.

The First-tier Tribunal accepted that the taxpayer’s chaotic domestic problems constituted reasonable excuse.

Separating from her husband and having to take on sole responsibility for childcare were unforeseeable difficulties and outside the control of...