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I Bond (TC3140)
The taxpayer was a solicitor. He was late settling a tax balance of £91,651 for 2011/12.
He paid £50,000 on 18 January 2013 and requested a time-to-pay arrangement on 7 March 2013. HMRC issued a penalty 12 days later. The taxpayer paid a further £30,000 on 29 March followed by the remaining £11,651 on 10 April.
He appealed against the fine, claiming he had been unable to pay the tax because of an outstanding payment from the Legal Services Commission, which made up 97% of his income. He had also been ill for a long period.
The First-tier Tribunal decided the taxpayer’s sickness constituted reasonable excuse. He had provided medical evidence and other proof to show the illness had prevented him from dealing with his business affairs.
The taxpayer’s appeal was allowed.
