h&h Accountants Ltd
h&h Accountants Ltd
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Somerset TA1 1RZ
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E  more@handhaccountants.com		 h&h Accountants Ltd
Horton House, 8 Ditton Street, Ilminster Somerset TA19 0BQ
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 TAX CASE: AILMENTS OF THE ELDERLY

An elderly disabled pensioner, Alan German, appealed against surcharges for late filing of self assessment returns. He also claimed he was unable to repay underpaid tax of more than 2,000 for the year 2007/08.

He failed to complete the tax return that HMRC sent, and so the department issued a penalty notice and then another in September because the return had not been received. The taxpayer was spurred into seeking help as to how to complete the form, which he finally submitted in March 2010.

The taxpayer claimed he had reasonable excuse not to pay the surcharges, because he did not have that kind of money. However, the First-tier Tribunal ruled that a lack of funds was not reasonable excuse. With regard to the underpayment, extra-statutory concession A19 did not apply.

The tribunal said the first condition for the concession to apply was met: the underpayment arose because of HMRCs error and the taxpayer reasonably believed his tax affairs were in order. The second condition was not met because HMRC notified the taxpayer of the underpaid tax within the allotted time.

The taxpayers appeal was dismissed.

The tribunal chairperson concluded by saying she had reached her decisions reluctantly: The appellant is an elderly, unrepresented, disabled PAYE taxpayer who is clearly bewildered by his encounter with the tax system and shocked by his underpayment, which was caused by a HMRC coding error..

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H and H Accountants limited. Registered in England No. 3058429.  16 Hammet St. Taunton TA1 1RZ.   Website and content © 2012

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