Yates v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 531 (TC) (25 July 2016)

Yates v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 531 (TC) (25 July 2016)

The appellant did not have a reasonable excuse for the late VAT returns and payments. Reliance on his partner or accountant is expressly excluded as a reasonable excuse by statute. The failure of HMRC to contact the appellant earlier does not relieve him of his statutory obligations. The appeal is therefore dismissed.

Citation
[2016] UKFTT 531
Parties
Appellant: Ray Yates; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 July 2016
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal (tax Chamber) Full Written Decision After Extension of Time
Outcome
Appeal dismissed
Legal Topics
VAT, Default Surcharge, Penalties, Reasonable Excuse, Reliance on Third Parties
Tax Law VAT Default Surcharge Penalties Reasonable Excuse Reliance on Third Parties

Case Brief

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Parties

Ray Yates

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal (tax Chamber) Full Written Decision After Extension of Time

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late VAT returns and payments
  2. 2 Whether reliance on a third party or lack of HMRC contact constitutes a reasonable excuse under VATA 1994

Ratio Decidendi

The appellant did not have a reasonable excuse for the late VAT returns and payments. Reliance on his partner or accountant is expressly excluded as a reasonable excuse by statute. The failure of HMRC to contact the appellant earlier does not relieve him of his statutory obligations. The appeal is therefore dismissed.

Court Disposition

Appeal dismissed