Michael Fallon v Commissioners for Her Majesty's Revenue and Customs

Facts

Michael Fallon, appearing in person, appealed against a 5% income tax surcharge of £84.80 imposed on £1,696 of unpaid tax for the 2008-2009 tax year. HM Revenue and Customs had, for reasons unexplained at the hearing, removed the Appellant's fuel benefit from his PAYE coding at the start of that tax year. When he filed his self-assessment return online on 30 January 2010, HMRC's system calculated the £1,696 as due for payment the following day under section 59B of the Taxes Management Act 1970, but the Appellant assumed the sum would instead be collected through his PAYE coding in later years and did not pay. He first learned that payment was required immediately when HMRC sent a reminder on 18 February 2010; he telephoned HMRC's helpline, was told of the option to defer payment, but decided borrowing would be quicker, and paid the tax on 4 March 2010. By then a surcharge under section 59C of the Taxes Management Act 1970 had already accrued, the tax having remained unpaid 28 days after the due date. Returns filed online after 30 December cannot have any resulting liability collected through the PAYE code, an administrative rather than statutory deadline. The Appellant appealed to the First-tier Tribunal, raising reasonable excuse and, at the hearing, an argument under Article 14 of the European Convention on Human Rights.