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 before the due date, given the prevailing speed of electronic payments. The test proposed by the respondent was too restrictive.

Citation
[2009] UKTFF 60 (TC)
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 VAT payment made electronically one day late was made 'at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners' in time 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 before the due date, given the prevailing speed of electronic payments. The test proposed by the respondent was too restrictive.

Court Disposition

Appeal allowed

Orders

  • Default surcharge of £559.72 set aside