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HMRC’s allocation of tax payments was not unreasonable

By Mark McLaughlin, March 2020

The appellant’s self-assessment return for the tax year 2010/11 was filed on 31 January 2012. His tax liability for the year was due to be paid on or before 10 February 2012 (in accordance with TMA 1970, s 59B(3). However, the tax was not paid in full until 3 March 2015. HM Revenue and Customs (HMRC) issued late payment penalty FA 2009, Sch 56, para 3).   

The appellant requested a review of HMRC’s decision, saying his 2010/11 tax payment was made on time. The payment had been allocated to penalties from previous years. The appellant was not happy that HMRC allocated the payment to penalties. The review upheld HMRC’s decision. The appellant appealed. 

The First-tier Tribunal (FTT) observed that the appellant’s balancing payment of £1,010 was due to be paid on 10 February 2012. He made a payment of £1,010 on 5 May 2012, over two

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