Bobby Watkins Ltd v Revenue & Customs [2014] UKFTT 836 (TC) (21 August 2014)

Bobby Watkins Ltd v Revenue & Customs [2014] UKFTT 836 (TC) (21 August 2014)

The modest late payment by Gemini Devices did not constitute an unmanageable major default by a dominant customer and did not amount to a reasonable excuse for late payment under the applicable legal test.

Citation
[2014] UKFTT 836 (TC)
Parties
Appellant: Bobby Watkins Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 August 2014
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Late Payment Penalty
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Penalty

Case Brief

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Parties

Bobby Watkins Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the Appellant had a reasonable excuse for late payment of VAT for the period ending 31 January 2014
  2. 2 Whether the surcharge imposed at 10% should be discharged

Ratio Decidendi

The modest late payment by Gemini Devices did not constitute an unmanageable major default by a dominant customer and did not amount to a reasonable excuse for late payment under the applicable legal test.

Court Disposition

Appeal dismissed

Orders

  • Surcharge upheld; no discharge of liability.