Aquila Processing Ltd v Revenue & Customs [2012] UKFTT 142 (TC) (17 February 2012)

Aquila Processing Ltd v Revenue & Customs [2012] UKFTT 142 (TC) (17 February 2012)

The appellant failed to provide a reasonable excuse for late payments as required by Schedule 56 Finance Act 2009. The penalties were correctly applied at 4% for more than ten defaults, and internal administrative or cash flow problems do not constitute a reasonable excuse under the legislation.

Citation
[2012] UKFTT 142
Parties
Appellant: Aquila Processing Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
17 February 2012
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
PAYE Penalties, National Insurance Contributions, Schedule 56 Finance Act 2009, Reasonable Excuse, Late Payment Penalties

Case Brief

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Parties

Aquila Processing Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Decision

  1. 1 Whether the appellant had a reasonable excuse for late payment of PAYE and NIC under Schedule 56 Finance Act 2009
  2. 2 Whether penalties were correctly applied for late payments exceeding ten defaults

Ratio Decidendi

The appellant failed to provide a reasonable excuse for late payments as required by Schedule 56 Finance Act 2009. The penalties were correctly applied at 4% for more than ten defaults, and internal administrative or cash flow problems do not constitute a reasonable excuse under the legislation.

Court Disposition

Appeal dismissed

Orders

  • Penalties totalling £1,282.26 upheld against the appellant