Biznomy Solutions UK Ltd v The Commissioners for HMRC
[2023] UKFTT 892 (TC)
Godavari Consultancy Services Ltd v The Commissioners for HMRC
7 February 2023
[2023] UKFTT 120 (TC)
First-tier Tribunal
A company was charged a late payment fee for taxes. They said they paid on time, but the tax office had proof they paid late. The company didn't have any good reason for paying late, so they had to pay the fee.
Key Facts
- •Godavari Consultancy Services Ltd appealed a £946.34 VAT default surcharge for the 10/21 period.
- •The surcharge was imposed under section 59 of the Value Added Tax Act 1994 (VATA 1994) for late VAT payment.
- •The Appellant claimed VAT return and payment were submitted on 6 December 2021, before the 7 December 2021 deadline.
- •HMRC claimed payment was received on 8 December 2021.
- •The Appellant cited a phone call with HMRC where they allegedly indicated the surcharge was a mistake and would be cancelled.
- •The Appellant did not provide documentary evidence of payment on 6th or 7th December 2021.
Legal Principles
Default surcharge regime for late VAT payments.
Value Added Tax Act 1994 (VATA 1994)
Definition and application of 'reasonable excuse' for late payment is an objective test considering all circumstances.
Rowland v HMRC (2006) STC 9SCD 536, Christine Perrin v Revenue and Customs Commissioners [2018] UKUT 0156 (TCC), The Clean Car Company Ltd v The Commissioners of Customs & Excise [1991] VATTR 234
Outcomes
Appeal dismissed.
The Tribunal found the payment was made on 8 December 2021, one day late. HMRC’s evidence of the payment date was accepted. No reasonable excuse was provided for the late payment.