Should have checked

Penalty for late paid tax

The taxpayer was due to pay income tax on 31 January. He sent the payment by cheque but his bank dishonoured it. HMRC imposed a penalty for late payment. The taxpayer appealed saying he had been unaware the bank had refused the cheque and could not understand why it had done so. His account had more than enough funds to cover the sum. He sent a replacement cheque in mid-March.

The First-tier Tribunal disagreed with the taxpayer’s assertion that he could not be expected to contact the bank to see whether the cheque had cleared. The judge said it was the taxpayer’s responsibility to ensure tax was paid on time. As was his entitlement he had chosen to pay close to the deadline but in so doing he took the risk that if anything went wrong the penalty clock would...