Complete Cladding Systems Ltd v Revenue & Customs [2014] UKFTT 266 (TC) (17 March 2014)

General references to financial and trading difficulties do not amount to a reasonable excuse for late VAT return or payment under Section 71(1) VATA 1994; the penalty is confirmed.

Citation: [2014] UKFTT 266
Parties: Appellant: Complete Cladding Systems Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction: United Kingdom
Judgment Date: 17 March 2014
Procedural Posture: VAT Penalty Appeal / First Tier Tribunal Decision
Outcome: Appeal disallowed
Legal Topics: VAT Penalties, Late Return, Late Payment, Reasonable Excuse

Tax Law VAT Penalties Late Return Late Payment Reasonable Excuse

Case Brief

Summary, issues, holding and outcome

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Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 1

Parties

Complete Cladding Systems Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal Decision

Legal Issues

1 Whether the appellant had a reasonable excuse for late VAT return and payment
2 Whether financial and trading difficulties constitute a reasonable excuse under Section 71(1) VATA 1994

Ratio Decidendi

General references to financial and trading difficulties do not amount to a reasonable excuse for late VAT return or payment under Section 71(1) VATA 1994; the penalty is confirmed.

Court Disposition

Appeal disallowed

Orders

The penalty of £9,437.24 is confirmed against the appellant.