Recruit Right Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 235 (TC) (12 April 2016)

Recruit Right Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 235 (TC) (12 April 2016)

The appellant failed to provide sufficient evidence or detail to establish a reasonable excuse for late payment of VAT. Insufficiency of funds and management difficulties do not constitute a reasonable excuse under the statutory framework. The appeal is dismissed.

Source-derived case information.

Citation
[2016] UKFTT 235 (TC)
Parties
Appellant: Recruit Right Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
12 April 2016
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Late Payment Penalties
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Penalties

Source-derived case record

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Parties

Recruit Right Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of VAT under s 59 Value Added Tax Act 1994
  2. 2 Whether the default surcharges imposed were valid

Ratio Decidendi

The appellant failed to provide sufficient evidence or detail to establish a reasonable excuse for late payment of VAT. Insufficiency of funds and management difficulties do not constitute a reasonable excuse under the statutory framework. The appeal is dismissed.

Court Disposition

Appeal dismissed