Reason for surcharge

The taxpayer was made redundant in April 2009. He contacted HMRC in February 2011 to report his redundancy payment.

The Revenue sent him a tax return for 2009/10 three months later; he submitted the completed document in July. The department calculated the additional tax and sent a bill to the taxpayer in August.

When he did not pay the taxman sent a reminder on 27 October and issued a surcharge notice on the grounds the bill had not been settled within 28 days of the due date.

The taxpayer paid the tax in October and appealed against the surcharge saying he had not been able to pay earlier because he did not have sufficient funds and had not been aware of the due date.

The First-tier Tribunal said a reasonable taxpayer would have tried to sort out his tax liability sooner either by contacting HMRC or appointing...