United Kingdom VAT & Duties Tribunals Decisions

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URL: http://www.bailii.org/uk/cases/UKVAT/2004/V18754.html
Cite as: [2004] UKVAT V18754

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CS Consultants (Scotland) Ltd v Customs and Excise [2004] UKVAT V18754 (03 September 2004)

18754

Default Surcharge – Late instruction of CHAPS payment after expiry of extension date. No reasonable excuse. Appeal refused.

EDINBURGH TRIBUNAL CENTRE

C S CONSULTANTS (SCOTLAND) LTD Appellants

- and -

THE COMMISSIONERS OF CUSTOMS AND EXCISE Respondents

Tribunal: (Chairman): Mrs G Pritchard, BL., MBA., WS

Sitting in Edinburgh on Thursday 19 August 2004

for the Appellants Mr David Symington

for the Respondents Mr Archie McCue

© CROWN COPYRIGHT 2004.


 


DECISION

This is an appeal against the imposition of a Default Surcharge in respect of the quarter 12/03 at the rate of 15% in the sum of £1134.64.

Mr David Symington appeared on behalf of the Appellant and gave evidence. Mr A McCue appeared on behalf of the Respondents. Written evidence was lodged consisting of a bundle of documents numbers 1-34. Where reference is made to any page in the said bundle it should be treated as repeated here.

Mr Symington's appeal was based on his belief that the Appellant was entitled not to be surcharged as he had made a CHAPS payment of the sum due for the 12/03 quarter on 9 February 2004.

In support, he quoted from the leaflet provided by the Commissioners with regard to electronic payment suggesting a 7 day extension for payment. He believed that since the due date was 31 January and was extended by 7 days if electronic payment was made that the due date was 7 February. However as this occurred on a Saturday he believed that the next suitable working day being Monday 9 February was a suitable date on which to make an electronic payment.

Mr McCue submitted that the Commissioners advised in the General VAT Guide at paragraph 21.3 that the Commissioners expected payment on a working day prior to the expiry of the 7 calendar day extension.

Mr Symington argued that in most business dealings if a payment date fell on a Saturday that payment was accepted on the Monday without penalty. In addition he also argued that where payments were made by direct debit by ones own bank the same rule applied. He considered that he had a reasonable excuse in applying the same principle to his VAT electronic payment.

It is with some regret that I disagree with him. In light of the fact that his return was not submitted until 10 February it appears that he was simply very late in attending to his Value Added Tax Return and payment. In addition there is evidence in the papers at page 1 of a long history of being within the Default Surcharge regime, which indicates a long history of failure to carry out the statutory obligation of making returns and payments timeously.

The appeal is therefore dismissed.

No expenses are found due to or by either party.

MRS G PRITCHARD, BL., MBA., WS

CHAIRMAN

RELEASE: 3 SEPTEMBER 2004

EDN/04/34