TC09528 - [2025] UKFTT 01069 (TC)

On the basis of the internal records provided to the Tribunal by HMRC, I accept that on 8 May 2024, HMRC posted to the Appellant a letter to notify it that it was now included in the Payments on Account regime.

However, the material provided to the Tribunal by the Appellant supports that the Appellant had a structured approach to post management and, had a letter from HMRC been received by the Appellant, it would have been acted upon. I am therefore satisfied that:

I am satisfied that the facts set out at paragraph 23 above amount to a reasonable excuse and that, once the reasonable excuse ceased on 18 November 2024, the Appellant made payment to HMRC without unreasonable delay.

I reject HMRC’s contention that the Appellant should have realised earlier than 18 November 2024 that the 09/24 payment had not been debited. I accept the Appellant’s explanation that it conducts a weekly cash review every Monday, and consider such an approach to be entirely reasonable. I accept that the failed payment would not have been apparent on the review conducted on 11 November 2024 (given Direct Debit payments are typically not taken by HMRC until 3 working days after the due date – which the Appellant understood to be Thursday 7 November 2024).

In the above circumstances, I allow the Appellant’s appeal.

This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.