Click Distribution Ltd v Revenue & Customs [2009] UKFTT 297 (TC) (04 November 2009)

Click Distribution Ltd v Revenue & Customs [2009] UKFTT 297 (TC) (04 November 2009)

The appellant failed to demonstrate a reasonable excuse for late payment of VAT. The underlying cause was consistent business cash flow issues, not unforeseen circumstances. Insufficiency of funds is not a reasonable excuse under the statute. The appeal was dismissed.

Citation
[2009] UKFTT 297
Parties
Appellant: Click Distribution Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
04 November 2009
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Late Payment Penalties
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Penalties

Case Brief

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Parties

Click Distribution Ltd

Appellant

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

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 under s 59(7)(b) VATA 1994
  2. 2 Whether cash flow difficulties and unexpectedly large VAT returns constitute a reasonable excuse

Ratio Decidendi

The appellant failed to demonstrate a reasonable excuse for late payment of VAT. The underlying cause was consistent business cash flow issues, not unforeseen circumstances. Insufficiency of funds is not a reasonable excuse under the statute. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appellant's appeal against the default surcharges is dismissed.