No excuse for delay

Rebecca Sheldon and Jordan Coppin examine whether accelerated payment notices extend to PAYE determinations, and what constitutes a reasonable excuse for their non-payment

In the case of Sheiling Properties Ltd v HMRC [2020] UKUT 175, the Upper Tribunal dismissed an appeal against penalties imposed by HMRC in respect of the non-payment of accelerated payment notices (APNs), finding that a PAYE determination is within the scope of an APN charge.

The tribunal also considered both the interpretation and application of the ‘reasonable excuse’ defence. It found that although a taxpayer can hold a reasonable excuse for not paying an APN where they have objectively reasonable belief that an APN is procedurally invalid, this was not a reasonable excuse for the failure to pay in this appeal and the FTT’s conclusion was not overturned. 

The facts of Sheiling