# Finance Act 2009, Paragraph 16

Extent: E+W+S+N.I.

(1) If P satisfies HMRC or (on appeal) the First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for a failure to make a payment—
(a) liability to a penalty under any paragraph of this Schedule does not arise in relation to that failure, and
(b) the failure does not count as a default for the purposes of paragraphs 6, 8B, 8C, 8G and 8H.
(2) For the purposes of sub-paragraph (1)—
(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P's control,
(b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
(c) where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

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Source: https://www.legislation.gov.uk/ukpga/2009/10/schedule/56/paragraph/16 (the official version)
Page: https://openlegislation.uk/finance-act-2009/schedule-56/paragraph-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.