The tribunal case of Sarah Cornes and HMRC considered whether there was reasonable excuse for late payment of income tax.
The appellant’s business was struggling and her husband had suffered through 3 employment terminations and ensuing personal problems.
The tax payer made a request for “time to pay” on 23 February 2011. Because of difficulties in managing paperwork etc a time to pay arrangement was finally agreed on 2 June 2011.
The tribunal found that the taxpayer had been diligent and prudent, in attempting to agree a time to pay arrangement prior to the surcharge trigger date (28 February 2011). Therefore she had reasonable excuse and the surcharge was not to be applied.