Cuco v Revenue & Customs [2013] UKFTT 121 (TC) (19 February 2013)

Cuco v Revenue & Customs [2013] UKFTT 121 (TC) (19 February 2013)

The unforeseeable and uncontrollable change in the appellant’s invoice discounting facilities constituted a reasonable excuse for late payment of PAYE/NIC, as it transformed a manageable insufficiency of funds into a cash crisis beyond reasonable management. Therefore, the penalty should not be imposed.

Citation
[2013] UKFTT 121 (TC)
Parties
Appellant: Cuco; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
19 February 2013
Procedural Posture
Income Tax – PAYE – Penalty Appeal / First Tier Tribunal (tax Chamber) – Decision
Outcome
Appeal allowed
Legal Topics
PAYE Penalties, Reasonable Excuse, Late Payment, Special Reduction, Finance Act 2009
Tax Law PAYE Penalties Reasonable Excuse Late Payment Special Reduction Finance Act 2009

Case Brief

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Parties

Cuco

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax – PAYE – Penalty Appeal / First Tier Tribunal (tax Chamber) – Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of PAYE/NIC under Schedule 56 to Finance Act 2009
  2. 2 Whether the penalty should be reduced or set aside due to special circumstances or disproportionality

Ratio Decidendi

The unforeseeable and uncontrollable change in the appellant’s invoice discounting facilities constituted a reasonable excuse for late payment of PAYE/NIC, as it transformed a manageable insufficiency of funds into a cash crisis beyond reasonable management. Therefore, the penalty should not be imposed.

Court Disposition

Appeal allowed

Orders

  • The penalty for late payment of PAYE/NIC for the year ended 5 April 2011 is set aside.