In JB Jackson v HMRC (TC02448 – 24 January) an employee (J) retired in September 2012. He filed his 2010/11 tax return on 9 January 2012. This showed a tax underpayment of £13 841 because J’s employer had only deducted basic rate tax from a payment of severance pay awarded to him on his retirement. J did not pay the tax due until 23 March and HMRC imposed a penalty under FA 2009 Sch 56 para 3(2). The First-tier Tribunal allowed J’s appeal finding that J had ‘believed that the appropriate tax had been deducted by his employer under the PAYE provisions’ so that he had a reasonable excuse for the late payment.
In JB Jackson v HMRC (TC02448 – 24 January) an employee (J) retired in September 2012. He filed his 2010/11 tax return on 9 January 2012. This showed a tax underpayment of £13 841 because J’s employer had only deducted basic rate tax from a payment of severance pay awarded to him on his retirement. J did not pay the tax due until 23 March and HMRC imposed a penalty under FA 2009 Sch 56 para 3(2). The First-tier Tribunal allowed J’s appeal finding that J had ‘believed that the appropriate tax had been deducted by his employer under the PAYE provisions’ so that he had a reasonable excuse for the late payment.
