20232
DEFAULT SURCHARGE – Reasonable excuse – Late payment – Payment on account régime – Balancing payments made electronically within 4 and 5 days of the end of the month following the prescribed accounting period – Payment on account régime requires payment by end of month without benefit of 6/7 day period of grace for electronic payment – Appellant's advisers unaware of non-availability of period of grace – Whether reasonable excuse – No – Appeal dismissed
LONDON TRIBUNAL CENTRE
SAPPHIRE RETAIL FUND LIMITED Appellant
- and –
THE COMMISSIONERS FOR HER MAJESTY'S REVENUE & CUSTOMS Respondents
Tribunal: SIR STEPHEN OLIVER QC (Chairman)
HEATHER KELLY
Sitting in public in London on 7 March 2007
P Ryan, director, for the Appellant
Jonathan Holl for the Respondents
© CROWN COPYRIGHT 2007
DECISION
The facts
"Due dates for payments
Please note that the businesses in the Payment on Account scheme are not entitled to the seven day extension to due date for payments by credit transfer. If your company was previously granted the seven day extension this concession is now withdrawn. Payments on account must be received by the Commissioners' account by the last working day of the month in which they are due. The balancing payment for the VAT return must be received in the Commissioners' account on or before the due date indicated on the VAT return."
The 02/06 default
The 05/06 default
Further facts
"We are aware that you are a compliant trader but this letter is a courtesy reminder to advise that your VAT payment on account instalment of £96,435 is due to be received in the Commissioners' account as cleared funds on or before 31 May 2008. Under Payment on Account Legislation all your VAT payments must be made electronically and you do not benefit from any extension to due date for paying in this manner."
That letter, which comes from the Customs' files, is stamped "Returned Mail".
Conclusions
SIR STEPHEN OLIVER QC
CHAIRMAN
RELEASED: 2 July 2007
LON 2006/1219