Penalty for late paid balancing payment

The taxpayer filed his 2016-17 tax return in January 2018. It showed tax due of nearly £15 000. By 3 March £5 116 was outstanding so HMRC imposed a penalty of £225 – 5% of the unpaid tax. He appealed saying the sum was unpaid because he was waiting for his statement telling him the HMRC bank details to use. 

The First-tier Tribunal said there was no reasonable excuse because the taxpayer could have found other ways of obtaining the information. However on HMRC’s assertion that there were no special circumstances the judge disagreed. He noted HMRC in reaching its decision had considered that the late payment interest on the £5 116 was cancelled but did not say why this was not considered unusual or exceptional. He said it was ‘no good HMRC just “submitting” that it is not a special circumstance’. It must explain...