The appellant’s tax return for 2012/13 was submitted electronically on 20 December 2013. It showed a tax liability of £1,442.02 due on 31 January 2014, of which £1,440 was capital gains tax. The appellant requested in his tax return that any outstanding tax be collected through his PAYE tax code.
HM Revenue and Customs (HMRC) did not act on that request, and did not advise the appellant that they would not be doing so or explain the reason apparently until a letter dated 1 April 2014. This was followed by a late penalty notice (under FA 2009, Sch 56) on 24 April 2014, which alerted the appellant that payment was not being made by an adjustment to his tax code.
The appellant was confused by HMRC’s communications. He appointed an agent, who telephoned HMRC on 3 June 2014 to query why the tax was not being collected by an adjustment of the appellant’s PAYE coding. The agent was told that
