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Unexpected changes in circumstances amounted to a reasonable excuse for late payment penalty purposes

By Mark McLaughlin, September 2020

The illness of the taxpayer’s mother, which resulted in expenses of an unexpected nature, his redundancy, and a difficult family situation leading to his depression, amounted to a reasonable excuse for the non-payment of his tax liability for the tax year in question. 

In December 2015, the appellant’s elderly mother suffered a stroke, which left her needing 24-hour care. She was without mental and physical capacity and was placed in a nursing home.
 
The appellant had to relocate to help look after his mother. He lost his job in 2016. To meet rental costs and costs of care for his mother, he used some of the money put aside to pay his taxes. He was unable to find employment due to his age and took a reduced salary as a delivery driver.

The appellant had to bring an action with the Court of Protection and the Office of the Public Guardian to obtain a Power of Attorney registered in his name. This allowed him to have more

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