LM Communications Ltd v Revenue & Customs [2014] UKFTT 596 (TC) (11 June 2014)

The appellant cannot rely on the error of a director as a reasonable excuse under VATA 1994 s71(1)(b). The penalty is not disproportionate. The appeal is dismissed.

Citation: [2014] UKFTT 596 (TC)
Parties: Appellant: L M Communications Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction: United Kingdom
Judgment Date: 11 June 2014
Procedural Posture: VAT Default Surcharge Appeal / First Tier Tribunal Decision
Outcome: Appeal dismissed
Legal Topics: VAT Default Surcharge, Reasonable Excuse, Proportionality of Penalty

Tax Law VAT Default Surcharge Reasonable Excuse Proportionality of Penalty

Case Brief

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Parties

L M Communications Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal Decision

Legal Issues

1 Whether the appellant had a reasonable excuse for late VAT payment
2 Whether the penalty imposed was disproportionate

Ratio Decidendi

The appellant cannot rely on the error of a director as a reasonable excuse under VATA 1994 s71(1)(b). The penalty is not disproportionate. The appeal is dismissed.

Court Disposition

Appeal dismissed