Garrod v Revenue & Customs (VAT) [2015] UKFTT 353 (TC) (15 July 2015)

Garrod v Revenue & Customs (VAT) [2015] UKFTT 353 (TC) (15 July 2015)

The Tribunal has jurisdiction to consider the lawfulness of HMRC's actions and secondary legislation. The requirement to tick a box confirming reading terms and conditions was not authorised by Regulation 25A(8) or s135 FA 2002, as it was not part of the VAT return form but a pre-condition to joining the Government...

Source-derived case information.

Citation
[2015] UKFTT 353 (TC)
Parties
Appellant: Neil Garrod; Respondents: Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
15 July 2015
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal Decision
Outcome
Penalty discharged; appeal allowed
Legal Topics
VAT Online Filing, Jurisdiction of Tribunal, Lawfulness of HMRC Directions, Penalty for Non Compliance
Tax Law Administrative Law VAT Online Filing Jurisdiction of Tribunal Lawfulness of HMRC Directions Penalty for Non Compliance

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Parties

Neil Garrod

Appellant

Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Does the Tribunal have jurisdiction to consider the lawfulness of HMRC's requirement to tick a box confirming reading terms and conditions for online VAT filing?
  2. 2 Was HMRC's imposition of the tick box pre-condition lawful?
  3. 3 Is the penalty for failing to file online valid if the pre-condition was unlawful?

Ratio Decidendi

The Tribunal has jurisdiction to consider the lawfulness of HMRC's actions and secondary legislation. The requirement to tick a box confirming reading terms and conditions was not authorised by Regulation 25A(8) or s135 FA 2002, as it was not part of the VAT return form but a pre-condition to joining the Government Gateway. The penalty imposed for failing to file online due to refusal to tick the box was therefore unlawful and must be discharged.

Court Disposition

Penalty discharged; appeal allowed

Orders

  • The £100 penalty imposed on Mr Garrod for failure to file an online VAT return is discharged.
  • HMRC must not enforce the penalty.