Confused HMRC

The taxpayer appealed against three late payment penalties for capital gains tax. The tax was due on 31 January 2013 and the penalty notices were dated 4 June and 14 August 2013 and 25 February 2014. He said HMRC had accepted an offer from him to pay the tax in two instalments on 31 March and  31 December 2013.

The Revenue said the agreement was to pay monthly although the inspector agreed at the hearing that the arrangement had been for two instalments. As a result it was agreed that the first two penalties were not due.

The First-tier Tribunal noted that the taxpayer presented an “extremely thorough and organised set of evidence”. HMRC were however “at best confused about what had and had not been agreed” and “at worst disingenuous” about what they had written.

The judge said the final penalty was valid. The...