Dental IT Ltd v Revenue & Customs [2011] UKFTT 128 (TC) (18 February 2011)

Dental IT Ltd v Revenue & Customs [2011] UKFTT 128 (TC) (18 February 2011)

The Tribunal found that the appellant, through its responsible officer, acted as a reasonable business person by seeking and acting upon specific advice from HMRC, which was misleading regarding the payment deadline. This constituted a reasonable excuse for the late payments, and therefore the surcharges should not be imposed.

Citation
[2011] UKFTT 128
Parties
Appellant: Dental IT Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 February 2011
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Late Payment Penalties
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Penalties

Case Brief

Summary, issues, holding and outcome

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Parties

Dental IT 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 there was a reasonable excuse for late payment of VAT resulting in default surcharges

Ratio Decidendi

The Tribunal found that the appellant, through its responsible officer, acted as a reasonable business person by seeking and acting upon specific advice from HMRC, which was misleading regarding the payment deadline. This constituted a reasonable excuse for the late payments, and therefore the surcharges should not be imposed.

Court Disposition

Appeal allowed

Orders

  • Default surcharges for periods 01/10 and 04/10 totalling £1,245.74 are set aside.