JMS Aggregate Supplies v Revenue & Customs [2011] UKFTT 426 (TC) (29 June 2011)
The appellant exercised reasonable foresight and diligence, but was unable to avoid cash flow difficulties caused by defaulting debtors and lack of bank support, and paid VAT as soon as possible; therefore, a reasonable excuse was established under section 59(7)(b) VATA.
- Citation
- [2011] UKFTT 426 (TC)
- Parties
- Appellant: JMS Aggregate Supplies; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)
- Jurisdiction
- United Kingdom
- Judgment Date
- 29 June 2011
- Procedural Posture
- VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
- Outcome
- Appeal allowed
- Legal Topics
- VAT, Default Surcharge, Reasonable Excuse, Late Payment, Cash Flow Difficulties
Case Brief
Summary, issues, holding and outcome
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Parties
JMS Aggregate Supplies
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 Whether the appellant had a reasonable excuse for late payment of VAT under section 59(7)(b) VATA
- 2 Whether cash flow difficulties caused by defaulting debtors and lack of bank support can constitute a reasonable excuse
Ratio Decidendi
The appellant exercised reasonable foresight and diligence, but was unable to avoid cash flow difficulties caused by defaulting debtors and lack of bank support, and paid VAT as soon as possible; therefore, a reasonable excuse was established under section 59(7)(b) VATA.
Court Disposition
Appeal allowed
Orders
- Default surcharges for the periods in issue are cancelled.
Full Case Text
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