Concryl Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) (Rev 1) [2016] UKFTT 673 (TC) (07 October 2016)

Concryl Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) (Rev 1) [2016] UKFTT 673 (TC) (07 October 2016)

The appellant did not have a reasonable excuse for late payment as the bank transfer limits and payment to subcontractors were foreseeable and could have been managed. The penalty is not disproportionate under statutory and case law.

Citation
[2016] UKFTT 673 (TC)
Parties
Appellant: Concryl Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 October 2016
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Proportionality of Penalty
Tax Law VAT Default Surcharge Reasonable Excuse Proportionality of Penalty

Case Brief

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Parties

Concryl Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late VAT payment
  2. 2 Whether the penalty imposed was disproportionate

Ratio Decidendi

The appellant did not have a reasonable excuse for late payment as the bank transfer limits and payment to subcontractors were foreseeable and could have been managed. The penalty is not disproportionate under statutory and case law.

Court Disposition

Appeal dismissed

Orders

  • Surcharges upheld