Wrong approach

The taxpayer ran a pub and hotel business as a sole trader. HMRC discovered during an employment compliance review that he had underpaid PAYE tax and National Insurance.

The Revenue officer requested further information which the taxpayer failed to supply. The tax department subsequently raised assessments to collect the outstanding amounts.

The taxpayer appealed against the assessments but not within the specified time. HMRC refused to accept the late appeals. The taxpayer said he was unable to supply the requested information because the documents were with his previous accountant.

The First-tier Tribunal dismissed his appeal which he took to the Upper Tribunal where the issue was whether or not the First-tier Tribunal had identified the correct approach to the application for permission to appeal out of time.

The Upper Tribunal found the First-tier Tribunal had looked mainly at whether or not the taxpayer had a reasonable excuse...