A mistake by the taxpayer’s agent resulting in HMRC being contacted for time to pay an accelerated payment notice after the time allowed constituted a reasonable excuse for the late payment, and the taxpayer’s appeal against a late payment penalty was allowed.

The appellant participated in certain tax mitigation arrangements, which involved investing in enterprise zones. In October 2009, HM Revenue and Customs (HMRC) opened an enquiry into the appellant’s tax return for 2007/08, which was extended in January 2010 to include his participation in the ‘Cobalt 7 & 8 scheme’.

On 2 September 2016, HMRC