No excuse

Penalty for failure to pay accelerated payment notice on time

The taxpayer claimed a loss that had arisen from an arrangement notifiable under the disclosure of tax avoidance schemes regime. HMRC opened an enquiry and issued an accelerated payment notice.

The taxpayer became one of the applicants in judicial review proceedings challenging the validity of such notices. He did not make the payment on the required date so HMRC imposed a penalty. An agreement to pay the APN by instalments was later made but the taxpayer appealed against the penalty.

On the taxpayer’s claim that he had difficulties communicating with HMRC to discuss the notice the First-tier Tribunal said these could not constitute a reasonable excuse not to pay the tax. The notice set out ways this could be done. On his argument about a lack of funds the tribunal said the legislation ‘expressly’ states that this could...