Littlemoss Preservation Ltd v Revenue & Customs [2011] UKFTT 692 (TC) (26 October 2011)

Littlemoss Preservation Ltd v Revenue & Customs [2011] UKFTT 692 (TC) (26 October 2011)

A reasonable excuse existed for the first default period (01/09) due to the unexpected withdrawal of the overdraft facility, but not for subsequent periods as the company should have realized the facility would not be forthcoming. Penalty assessments were properly raised and calculated and should stand.

Citation
[2011] UKFTT 692
Parties
Appellant: Littlemoss Preservation Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
26 October 2011
Procedural Posture
VAT and Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part (default surcharge for 01/09 period only); penalty appeal dismissed entirely.
Legal Topics
VAT Default Surcharge, Penalties, Reasonable Excuse, Bank Overdraft Facility, Schedule 24 Finance Act 2007
Tax Law VAT Default Surcharge Penalties Reasonable Excuse Bank Overdraft Facility Schedule 24 Finance Act 2007

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Parties

Littlemoss Preservation Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT and Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether Littlemoss Preservation Ltd had a reasonable excuse for late VAT returns and payments
  2. 2 Whether penalty assessments under Schedule 24 Finance Act 2007 were properly raised

Ratio Decidendi

A reasonable excuse existed for the first default period (01/09) due to the unexpected withdrawal of the overdraft facility, but not for subsequent periods as the company should have realized the facility would not be forthcoming. Penalty assessments were properly raised and calculated and should stand.

Court Disposition

Appeal allowed in part (default surcharge for 01/09 period only); penalty appeal dismissed entirely.

Orders

  • Default surcharge for 01/09 period set aside; surcharges for subsequent periods and all penalty assessments to stand.