A first tier tax tribunal has upheld the decision to issue a penalty after taxpayer Derek Ross failed to pay his PAYE on time.
In the case of Ross v Revenue & Customs the taxpayer had filed his tax return, owing £807.40, and elected for HMRC to collect it through payroll by adjusting his PAYE code.
Ross thought he had done his work for another year and forgot about it until a £40 penalty notice arrived.
Ross’ accountants, McLay, McAlister and McGibbon LLP, lodged an appeal on the 21 June 2013. Ross did not consider that there was any good reason that the tax could not have been collected through the tax code and he assumed that this would be done.
HMRC sent a letter on 23 July 2013 rejecting his appeal, saying there was insufficient PAYE liability to enable the additional SA tax to be collected through the tax code.
On 15 August 2013 Ross requested a review of...