Vividas Ltd v Revenue & Customs [2009] UKFTT 100 (TC) (13 May 2009)

Vividas Ltd v Revenue & Customs [2009] UKFTT 100 (TC) (13 May 2009)

Interest is properly chargeable on late-paid VAT following voluntary disclosure, as it is commercial restitution and not a penalty; the rate is set by regulation and neither HMRC nor the Tribunal has discretion to alter it.

Source-derived case information.

Citation
[2009] UKFTT 100
Parties
Appellant: Vividas Limited; Respondents: The Commissioners for Her Majesty's Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
13 May 2009
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Interest on Tax, Voluntary Disclosure, Correction of Errors
Tax Law VAT Interest on Tax Voluntary Disclosure Correction of Errors

Source-derived case record

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Parties

Vividas Limited

Appellant

The Commissioners for Her Majesty's Revenue and Customs (VAT)

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

  1. 1 Whether interest charged on VAT following voluntary disclosure of errors is properly payable
  2. 2 Whether interest constitutes a penalty for honesty
  3. 3 Whether the interest rate applied is excessive or absurd

Ratio Decidendi

Interest is properly chargeable on late-paid VAT following voluntary disclosure, as it is commercial restitution and not a penalty; the rate is set by regulation and neither HMRC nor the Tribunal has discretion to alter it.

Court Disposition

Appeal dismissed