Fantastic Illuminations Ltd v Revenue & Customs [2009] UKTFF 60 (TC) (24 April 2009)

Fantastic Illuminations Ltd v Revenue & Customs [2009] UKTFF 60 (TC) (24 April 2009)

It was reasonable for the appellant to expect that the payment, initiated in good time, would be received by HMRC by the due date, and the requirement for a 'cast iron guarantee' is too restrictive.

Citation
[2009] UKTFF 60
Parties
Appellant: Fantastic Illuminations Limited; Respondents: The Commissioners for Her Majesty's Revenue and Customs (Value Added Tax)
Jurisdiction
United Kingdom
Judgment Date
24 April 2009
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed
Legal Topics
VAT, Default Surcharge, Electronic Payment, Reasonable Expectation of Payment Receipt
Tax Law VAT Default Surcharge Electronic Payment Reasonable Expectation of Payment Receipt

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Parties

Fantastic Illuminations 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 VAT payment was made at such a time and in such a manner that it was reasonable to expect it would be received by HMRC by the due date under section 59(7)(a) VAT Act 1994

Ratio Decidendi

It was reasonable for the appellant to expect that the payment, initiated in good time, would be received by HMRC by the due date, and the requirement for a 'cast iron guarantee' is too restrictive.

Court Disposition

Appeal allowed

Orders

  • Default surcharge of £559.72 set aside