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Special circumstances

13 August 2013
Issue: 4415 / Categories: Tax cases , Admin , Business , Employees , Income Tax

Claygold Property Ltd (TC2717)

The taxpayer company was late in making payment of PAYE and National Insurance liabilities for 2010/11. HMRC imposed under FA 2009 sch 56 a penalty of £9 701 subsequently reduced to £6 151.

Schedule 56 para 16 provides there will be no fine if there is a reasonable excuse for the failure to pay on time but para 16(2) states:

  • an insufficiency of funds is not a reasonable excuse unless attributable to events outside an employer’s control;
  • the reliance on somebody else to do something is not a reasonable excuse unless reasonable care was taken to avoid failure; and
  • if there was a reasonable excuse for the failure that excuse is deemed to have continued if the failure is remedied without unreasonable delay once the excuse ceased.

The current penalty regime started...

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