Ravenfield Ltd v Revenue & Customs [2013] UKFTT 650 (TC) (08 November 2013)

Ravenfield Ltd v Revenue & Customs [2013] UKFTT 650 (TC) (08 November 2013)

The appellant failed to demonstrate that the late payment was due to unforeseen or unavoidable circumstances beyond its control; cash flow shortages and banking limits did not constitute a reasonable excuse under the statutory regime.

Citation
[2013] UKFTT 650 (TC)
Parties
Appellant: Ravenfield Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
08 November 2013
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Late Payment, Insufficiency of Funds
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Insufficiency of Funds

Case Brief

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Parties

Ravenfield Limited

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 the appellant had a reasonable excuse for late payment of VAT
  2. 2 Whether restrictions on internet banking and cash flow shortages constitute a reasonable excuse under s59 and s71 VATA 1994

Ratio Decidendi

The appellant failed to demonstrate that the late payment was due to unforeseen or unavoidable circumstances beyond its control; cash flow shortages and banking limits did not constitute a reasonable excuse under the statutory regime.

Court Disposition

Appeal dismissed

Orders

  • The surcharge of £3,351.27 is upheld.