Herrmann v Revenue and Customs (INCOME TAX - late payment penalties and surcharges - reallocation of past payments) [2026] UKFTT 715 (TC) (14 May 2026)

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

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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

  1. 1 Whether late payment penalties and surcharges can be validly imposed where tax was paid on time but later reallocated to different periods
  2. 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