Financial difficulty caused by the failure of the taxpayer’s company and resulting CVA was a reasonable excuse for the late payment of an amount due under an accelerated payment notice.  
 
In November 2009, HM Revenue and Customs (HMRC) opened an enquiry into the appellant’s self-assessment return for the tax year 2008/09. The enquiry related to the appellant’s participation in a tax avoidance scheme. The return showed a tax repayment due to the appellant. 
 
In May 2015, HMRC wrote to the appellant enclosing an accelerated payment notice (APN), showing an amount of tax payable by 21 August 2015. The appellant explained to HMRC that he could not pay the amount within 30 days, pointing out that his company was in a CVA. Following negotiations between the appellant’s representative and HMRC, the revised payment date for the APN amount was June 2016. HMRC subsequently issued penalties