Scheef v Commissioners for His Majesty's Revenue and Customs (VAT Default Surcharge - insufficiency of funds - whether a reasonable excuse exists) [2024] UKFTT 1010 (TC) (05 November 2024)

Scheef v Commissioners for His Majesty's Revenue and Customs (VAT Default Surcharge - insufficiency of funds - whether a reasonable excuse exists) [2024] UKFTT 1010 (TC) (05 November 2024)

The appellant's financial difficulties, including the failure of All Outdoor Limited and other debts, did not amount to a reasonable excuse for late VAT payment. The appellant was aware of his obligations, had a pattern of non-payment, and failed to contact HMRC before the due date to arrange payment. The cause of insufficiency of funds was not sufficient to excuse the default.

Citation
[2024] UKFTT 1010
Parties
Appellant: Russell Scheef; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
05 November 2024
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Full Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Late Payment of VAT, Insufficiency of Funds
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment of VAT Insufficiency of Funds

Case Brief

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Parties

Russell Scheef

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of VAT and late filing of VAT return for period 01/23

Ratio Decidendi

The appellant's financial difficulties, including the failure of All Outdoor Limited and other debts, did not amount to a reasonable excuse for late VAT payment. The appellant was aware of his obligations, had a pattern of non-payment, and failed to contact HMRC before the due date to arrange payment. The cause of insufficiency of funds was not sufficient to excuse the default.

Court Disposition

Appeal dismissed

Orders

  • The VAT default surcharge for period 01/23 is upheld.