Reynolds v Revenue & Customs [2010] UKFTT 40 (TC) (21 January 2010)

Reynolds v Revenue & Customs [2010] UKFTT 40 (TC) (21 January 2010)

HMRC acted reasonably in refusing retrospective withdrawal from the flat rate scheme as their policy is rational, aiming to prevent abuse and maintain the scheme’s simplification objectives. The mere fact of paying more VAT is not an exceptional circumstance justifying retrospective withdrawal.

Citation
[2010] UKFTT 40 (TC)
Parties
Appellant: Brian Reynolds; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
21 January 2010
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Flat Rate Scheme, Retrospective Withdrawal, Reasonableness of HMRC Decision
Tax Law VAT Flat Rate Scheme Retrospective Withdrawal Reasonableness of HMRC Decision

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Parties

Brian Reynolds

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether HMRC's refusal to allow retrospective withdrawal from the flat rate VAT scheme was reasonable under section 84(4ZA) VAT Act 1994

Ratio Decidendi

HMRC acted reasonably in refusing retrospective withdrawal from the flat rate scheme as their policy is rational, aiming to prevent abuse and maintain the scheme’s simplification objectives. The mere fact of paying more VAT is not an exceptional circumstance justifying retrospective withdrawal.

Court Disposition

Appeal dismissed