Surcharges stand

The taxpayer was late paying income tax for 2008/09 2009/10 and 2010/11. HMRC imposed surcharges agains which the taxpayer appealed citing a serious car accident in February 2009.

He sustained serious injuries that he claimed had a “catastrophic” impact on his finances because he was unable to work normally and had to pay for medical treatment and legal expenses.

The Revenue accepted the accident had affected the taxpayer’s ability to work initially but it was clear he had since become able to earn money and organise his life.

The First-tier Tribunal agreed that the taxpayer’s income was much less than before the accident but the situation amount to a reasonable excuse because the tax due was calculated as a proportion of the reduced income.

The late payments occurred two years after the accident by which time the taxpayer had returned to work – which...