Parent’s illness is a reasonable excuse

The taxpayer paid his 2014-15 tax late. HMRC imposed penalties against which he appealed on the grounds that his family difficulties constituted a reasonable excuse. He had relocated because of a parent’s sudden ill health and then been made redundant. He had contribute to the costs of care so used some money set aside for tax to pay this. This left him in a difficult financial situation requiring him to take a less well-paid job and caused him stress related anxiety. The taxpayer had contacted HMRC and agreed a time-to-pay arrangement.

The First-tier Tribunal said the taxpayer had ‘clearly gone through a prolonged period of difficulty’ and it was understandable that he had not attended fully to his tax affairs. However he was now in a position to pay all the tax due.

The fact the taxpayer had continued to work after being made redundant was a ‘clear...