Mareel Ltd v Revenue and Customs (Default surcharge - whether surcharge notice served on Appellant) [2023] UKFTT 283 (TC) (11 January 2023)

Mareel Ltd v Revenue and Customs (Default surcharge - whether surcharge notice served on Appellant) [2023] UKFTT 283 (TC) (11 January 2023)

The tribunal found that the surcharge liability notice for period 09/20 was more likely than not received and properly served; Mareel failed to establish a reasonable excuse for late VAT payment as the Covid-19 impact had passed and cash flow issues were foreseeable; the surcharge was not disproportionate under established legal principles.

Citation
[2023] UKFTT 283
Parties
Appellant: Mareel Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 January 2023
Procedural Posture
VAT Default Surcharge Appeal / Final Judgment at First Tier Tribunal (tax Chamber)
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Service of Surcharge Liability Notice, Reasonable Excuse, Proportionality of Penalty
Tax Law VAT Default Surcharge Service of Surcharge Liability Notice Reasonable Excuse Proportionality of Penalty

Case Brief

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Parties

Mareel Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / Final Judgment at First Tier Tribunal (tax Chamber)

Legal Issues

  1. 1 Whether surcharge liability notice was properly served
  2. 2 Whether appellant had a reasonable excuse for late VAT payment
  3. 3 Whether the surcharge was disproportionate

Ratio Decidendi

The tribunal found that the surcharge liability notice for period 09/20 was more likely than not received and properly served; Mareel failed to establish a reasonable excuse for late VAT payment as the Covid-19 impact had passed and cash flow issues were foreseeable; the surcharge was not disproportionate under established legal principles.

Court Disposition

Appeal dismissed

Orders

  • The default surcharge notice for period 09/20 was properly served.
  • Mareel Limited has no reasonable excuse for its default in period 06/21.