Sherdons Golf Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 405 (TC) (09 June 2016)

Sherdons Golf Ltd v Revenue and Customs (VAT - PENALTIES : Default surcharge) [2016] UKFTT 405 (TC) (09 June 2016)

The Tribunal found that the TTP arrangement reached on 13 March 2013 did not include future quarterly VAT liabilities, only the officer’s assessment and arrears existing at the time. The Appellant did not have a reasonable excuse for late payment of VAT for the periods in question. Surcharges were correctly imposed, subject to minor reductions for part payments made on time.

Citation
[2016] UKFTT 405 (TC)
Parties
Appellant: Sherdons Golf Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
09 June 2016
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed (save for minor reductions in three surcharges)
Legal Topics
VAT, Default Surcharge, Time to Pay Arrangements, Reasonable Excuse, Late Payment
Tax Law VAT Default Surcharge Time to Pay Arrangements Reasonable Excuse Late Payment

Case Brief

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Parties

Sherdons Golf Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the Time to Pay (TTP) arrangement covered future VAT liabilities
  2. 2 Whether the Appellant had a reasonable excuse for late payment of VAT

Ratio Decidendi

The Tribunal found that the TTP arrangement reached on 13 March 2013 did not include future quarterly VAT liabilities, only the officer’s assessment and arrears existing at the time. The Appellant did not have a reasonable excuse for late payment of VAT for the periods in question. Surcharges were correctly imposed, subject to minor reductions for part payments made on time.

Court Disposition

Appeal dismissed (save for minor reductions in three surcharges)

Orders

  • Surcharges for periods 05/13, 08/13, and 02/14 to be reduced by £100, £300, and £300 respectively to reflect part payments made on time.
  • All other surcharges confirmed as imposed.