Visual Vertification Ltd v Revenue & Customs (VAT - PENALTIES : Default surcharge) [2015] UKFTT 408 (TC) (13 August 2015)

Visual Vertification Ltd v Revenue & Customs (VAT - PENALTIES : Default surcharge) [2015] UKFTT 408 (TC) (13 August 2015)

The appellant did not have a reasonable excuse for late payment, as it was not reasonable to believe cheques would clear the same day without confirmation, and the penalties were not disproportionate in the circumstances.

Citation
[2015] UKFTT 408 (TC)
Parties
Appellant: Visual Verification Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 August 2015
Procedural Posture
VAT PENALTIES : Default Surcharge / First Tier Tribunal (tax) Appeal Against Default Surcharges
Outcome
Appeal dismissed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Late Payment, Penalty Mitigation
Tax Law VAT Default Surcharge Reasonable Excuse Late Payment Penalty Mitigation

Case Brief

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Parties

Visual Verification Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT PENALTIES : Default Surcharge / First Tier Tribunal (tax) Appeal Against Default Surcharges

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of VAT for periods 06/11 and 03/12
  2. 2 Whether the penalties imposed were disproportionate or unfair

Ratio Decidendi

The appellant did not have a reasonable excuse for late payment, as it was not reasonable to believe cheques would clear the same day without confirmation, and the penalties were not disproportionate in the circumstances.

Court Disposition

Appeal dismissed