Dudman Group Ltd v Revenue & Customs [2009] UKFTT 52 (TC) (17 April 2009)

Dudman Group Ltd v Revenue & Customs [2009] UKFTT 52 (TC) (17 April 2009)

The appellant had a reasonable excuse for the late payment for period 12/06 due to the unexpected breakdown of loan negotiations with its established bank at a late stage, but had no reasonable excuse for the late payment for period 03/07, as it was a minor administrative error for which the appellant was responsible.

Citation
[2009] UKFTT 52 (TC)
Parties
Appellant: Dudman Group Limited; Respondents: The Commissioners for Her Majesty's Revenue and Customs (Value Added Tax)
Jurisdiction
United Kingdom
Judgment Date
17 April 2009
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax), Decision
Outcome
Appeal allowed in relation to period 12/06; appeal dismissed in relation to period 03/07.
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

Dudman Group Limited

Appellant

The Commissioners for Her Majesty's Revenue and Customs (Value Added Tax)

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 payment of VAT for periods 12/06 and 03/07

Ratio Decidendi

The appellant had a reasonable excuse for the late payment for period 12/06 due to the unexpected breakdown of loan negotiations with its established bank at a late stage, but had no reasonable excuse for the late payment for period 03/07, as it was a minor administrative error for which the appellant was responsible.

Court Disposition

Appeal allowed in relation to period 12/06; appeal dismissed in relation to period 03/07.

Orders

  • Surcharge for period 12/06 set aside.
  • Surcharge for period 03/07 upheld.