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, the tax had been paid and the statutory language does not permit retrospective imposition of penalties or surcharges following reallocation of payments.
- Citation
- [2026] UKFTT 715 (TC)
- 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 where tax was paid on time but later reallocated to different periods
- 2 Whether retrospective reallocation of payments can trigger penalties or surcharges under the relevant statutory provisions
Ratio Decidendi
Neither the surcharges nor the late payment penalties were validly issued because, at the statutory trigger dates, the tax had been paid and the statutory language does not permit retrospective imposition of penalties or surcharges following reallocation of payments.
Court Disposition
Appeal allowed
Orders
- Late payment penalties and surcharges set aside
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