LSDM Ltd v Revenue & Customs (VAT - PENALTIES : Default surcharge) [2019] UKFTT 136 (TC) (26 February 2019)

LSDM Ltd v Revenue & Customs (VAT - PENALTIES : Default surcharge) [2019] UKFTT 136 (TC) (26 February 2019)

On the balance of probabilities, HMRC did not serve the surcharge liability notice dated 23 August 2017 on LSDM Ltd. Actual receipt of the notice is required for the surcharge regime to apply. As no valid notice was received, the surcharge for the 06/17 quarter is removed, and the 09/17 surcharge becomes the first surcharge at 0%.

Citation
[2019] UKFTT 136
Parties
Appellant: LSDM Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 February 2019
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
VAT Default Surcharge, Service of Surcharge Liability Notice, Proof of Posting, Balance of Probabilities
Tax Law VAT Default Surcharge Service of Surcharge Liability Notice Proof of Posting Balance of Probabilities

Case Brief

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Parties

LSDM Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether HMRC served a valid surcharge liability notice on LSDM Ltd for the 06/17 quarter
  2. 2 Whether the surcharge for the 09/17 quarter was validly imposed
  3. 3 Whether LSDM Ltd received the required statutory notice

Ratio Decidendi

On the balance of probabilities, HMRC did not serve the surcharge liability notice dated 23 August 2017 on LSDM Ltd. Actual receipt of the notice is required for the surcharge regime to apply. As no valid notice was received, the surcharge for the 06/17 quarter is removed, and the 09/17 surcharge becomes the first surcharge at 0%.

Court Disposition

Appeal allowed

Orders

  • Surcharge liability for the 06/17 quarter is removed.
  • Surcharge liability for the 09/17 quarter becomes the first surcharge at 0%.