It is contrary to HMRC’s published guidance to pursue and enforce penalties which are under appeal ... but...

Benjamin Erridge is dyslexic.  When he received 7 years assessments he consulted an accountant and appealed.  All his income was subject to PAYE.  He had a reasonable excuse for not notifying HMRC of his liability for the High Income Tax Benefit Charge but HMRC dismissed the appeals.  Mr Erridge asked HMRC for “time to pay” by spreading the amounts over a period but was told he “didn’t earn enough”; HMRC then transferred his case to a debt collection company. Mr Erridge was placed under pressure to raise the full sum as soon as possible. He put the family home on the market at a discounted price; a sale was agreed within two weeks and HMRC were paid.

On further appeal the tax tribunal found that HMRC had failed to make proper and timely use of the information that they had.  They dismissed 6 of the 7 assessments,  reduced the penalties to zero, and suggested to HMRC that they “give up” the further amounts in terms of an extra-statutory concession. 

So – contrary to HMRC’s own guidance – Mr Erridge has lost his house and all for a tax debt that barely exists.  You can read the gruesome details here  https://assets.caselaw.nationalarchives.gov.uk/ukftt/tc/2024/276/ukftt_tc_2024_276.pdf

“It is very iniquitous to make me pay my debts, you have no idea of the pain it gives one.”

Lord Byron