Show the figures

The taxpayer had income from a farming partnership and a haulage business. His 2010/11 return was submitted in time and produced a tax liability of £6.331 due for payment on 31 January 2012 but it was not paid.

The return for 2011/12 was filed in May 2012 showing losses and including a claim to carry back losses from 2011/12 to 2010/11.

The taxpayer’s adviser had written to HMRC on 24 January 2012 saying his client had losses for 2001/12 which he would be setting against 2010/11 profits; he would not be paying the tax due on 31 January 2012.

The Revenue imposed a payment for late payment of the tax on the basis the adviser’s letter was not a valid claim within the meaning of TMA 1970 s 42(1A) because the losses were not quantified. Had they been the letter would have been...