In AJM Mansell Ltd v HMRC (TC02279 – 9 October) a company persistently paid its PAYE and NIC after the due dates and HMRC imposed penalties under FA 2009 Sch 56. The company appealed contending that the penalties were excessive because payments which it had made should have been allocated to its liability for the current tax month rather than to its liability for the previous tax month. The First-tier Tribunal rejected this contention and dismissed the appeal. Applying dicta of Lord Macnaghten in Cory Bros & Co Ltd v Turkish SS Mecca HL [1897] AC 286 ‘when a debtor is making a payment to his creditor he may appropriate the money as he pleases and the creditor must apply it accordingly. If the debtor does not make any appropriation at the time when he makes the payment the right of application...
