Brown v Revenue & Customs [2014] UKFTT 208 (TC) (20 February 2014)

Brown v Revenue & Customs [2014] UKFTT 208 (TC) (20 February 2014)

The Tribunal found that the appellant had a reasonable excuse for the late payment of tax because he reasonably believed, following his telephone conversation with HMRC on 28 February 2012, that a time to pay arrangement had been agreed or that the position would be reviewed before any penalty was imposed. The lack of clarity from HMRC and the appellant's actions in contacting HMRC and attempting to pay as soon as possible supported this conclusion.

Citation
[2014] UKFTT 208
Parties
Appellant: Gordon Brown; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
20 February 2014
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Late Payment Penalty, Reasonable Excuse, Time to Pay Arrangement
Tax Law Income Tax Late Payment Penalty Reasonable Excuse Time to Pay Arrangement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Gordon Brown

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of income tax under Schedule 56 Finance Act 2009
  2. 2 Whether a time to pay arrangement was agreed with HMRC

Ratio Decidendi

The Tribunal found that the appellant had a reasonable excuse for the late payment of tax because he reasonably believed, following his telephone conversation with HMRC on 28 February 2012, that a time to pay arrangement had been agreed or that the position would be reviewed before any penalty was imposed. The lack of clarity from HMRC and the appellant's actions in contacting HMRC and attempting to pay as soon as possible supported this conclusion.

Court Disposition

Appeal allowed

Orders

  • The £2,001 penalty is discharged.