First Testing Ltd v The Commissiioners for Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 494 (TC) (13 July 2016)

First Testing Ltd v The Commissiioners for Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 494 (TC) (13 July 2016)

The appellant failed to demonstrate a reasonable excuse for late payment. The absence of the bookkeeper was foreseeable and arrangements should have been made. None of the other events cited contributed to the late payment. The surcharge was correctly imposed under VAT Act 1994 s59(5).

Citation
[2016] UKFTT 494
Parties
Appellant: First Testing Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
13 July 2016
Procedural Posture
VAT Default Surcharge Appeal / Final Determination Without Hearing
Outcome
Appeal dismissed
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

First Testing Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / Final Determination Without Hearing

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of VAT
  2. 2 Whether the default surcharge was correctly imposed

Ratio Decidendi

The appellant failed to demonstrate a reasonable excuse for late payment. The absence of the bookkeeper was foreseeable and arrangements should have been made. None of the other events cited contributed to the late payment. The surcharge was correctly imposed under VAT Act 1994 s59(5).

Court Disposition

Appeal dismissed

Orders

  • Default surcharge of £1,308.40 upheld