Herrmann v Revenue and Customs (INCOME TAX - late payment penalties and surcharges - reallocation of past payments) [2026] UKFTT 715 (TC) (14 May 2026)
Neither the surcharges nor the late payment penalties were validly issued because, at the statutory trigger dates, no tax remained unpaid; retrospective reallocation of payments does not create a liability for penalties or surcharges under the relevant legislation.
- Citation
- [2026] UKFTT 715
- Parties
- Appellant: Jeremy Francis Herrmann; Respondents: The Commissioners for His Majesty's Revenue and Customs
- Jurisdiction
- United Kingdom
- Judgment Date
- 14 May 2026
- Procedural Posture
- Tax Appeal / First Tier Tribunal Judgment
- Outcome
- Appeal allowed
- Legal Topics
- Income Tax, Late Payment Penalties, Surcharges, Self Assessment, Reallocation of Payments
Case Brief
Summary, issues, holding and outcome
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Parties
Jeremy Francis Herrmann
Appellant
The Commissioners for His Majesty's Revenue and Customs
Respondents
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Legal Issues
- 1 Whether late payment penalties and surcharges can be validly imposed when tax was paid on time but later reallocated to different periods
- 2 Interpretation of statutory trigger points for penalties and surcharges under Finance Act 2009 and Taxes Management Act 1970
Ratio Decidendi
Neither the surcharges nor the late payment penalties were validly issued because, at the statutory trigger dates, no tax remained unpaid; retrospective reallocation of payments does not create a liability for penalties or surcharges under the relevant legislation.
Court Disposition
Appeal allowed
Orders
- Late payment penalties and surcharges set aside
Full Case Text
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