The situation was that a Sec 455 debt had to be repaid by the 29th February 2016. For a number of reasons which aren't relevant the debtor couldn't pay the money before the 29th February. The Company received the cheque on the 29th February and banked it the same day by using the bank's Fast Pay service. According to the bank the Fast Pay envelope was not opened until after close of play on the 29th and so the cheque wasn't credited to the Company's account until the 1st March.
The Inspector of Taxes is adamant that the loan wasn't repaid until 1st March when the cheque was shown on the Company's bank statement. He comments that 'the money was not in the Company's control until the bank debited the the money from the debtors account and credited it to the company's (account)'
His argument is that there are any number of reasons why the cheque might not have cleared which is true but it did clear and even had it appeared in the Company's account a day or so earlier there might still have been reasons why it wouldn't have cleared.
Evidence of the above has been provided by the bank but the Inspector won't move. Does anyone have any ideas or had a similar situation?