United Kingdom VAT & Duties Tribunals Decisions

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You are here: BAILII >> Databases >> United Kingdom VAT & Duties Tribunals Decisions >> Airmaster Southern Ltd v Revenue & Customs [2007] UKVAT V20335 (11 September 2007)
URL: http://www.bailii.org/uk/cases/UKVAT/2007/V20335.html
Cite as: [2007] UKVAT V20335

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Airmaster Southern Ltd v Revenue & Customs [2007] UKVAT V20335 (11 September 2007)

 


20335

LONDON TRIBUNAL CENTRE Reference No: LON/2007/265

Copy sent to:

Appellant/Applicant

Respondents

AIRMASTER SOUTHERN LIMITED Appellant

- and -

THE COMMISSIONERS FOR HER MAJESTY'S REVENUE AND CUSTOMS Respondents

Tribunal: NICHOLAS ALEKSANDER (Chairman)

TYM MARSH

Sitting in public in London on 27 June 2007

DIRECTION

under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Default Surcharge being a reasonable excuse appeal as defined by Rule 2 of the Value Added Tax Tribunals Rules 1986 coming on for hearing today

AND UPON HEARING Mr Rankin, a director of the Appellant and Gloria Orimoloye, Advocate, of the Solicitors Office of HM Revenue & Customs for the Respondents

AND THIS TRIBUNAL having heard this appeal under Rule 26(2) and having announced its decision

AND THE parties present at the hearing or by their said representatives stating pursuant to Rule 30(8) of the Value Added Tax Tribunal Rules 1986 that they do not require the said decision to be recorded in a written document in accordance with Rules 30(1)

THIS TRIBUNAL FINDS THAT the Appellant attempted to pay the VAT due in respect of the return for the period May 2006 to July 2006 on 7 September 2006 through its electronic banking arrangements with its bank. The due date by which payment had to reach the Respondents for this return was 31 August 2006, but was extended by seven days (in accordance with the statement on the reverse of the VAT return) in the case of electronic payments until 7 September 2006. However the Appellant's bank did not permit payments in excess of £10,000 to be made in this way. In consequence a payment of £10,000 was made on 7 September and the balance of £6785.29 was made on 8 September 2006. The payments were processed by the bank through the BACS system and neither reached the Respondents' account until after the due date, as extended. The statement on the reverse of the Return refers to Notice 700, which clearly distinguishes between CHAPS and BACS payments and the difference in the time they take to be processed. Accordingly the Appellant did not have a reasonable excuse for its default. Because of the number of prior defaults within the Appellant's surcharge liability period, the default surcharge is at 15%

AND THIS TRIBUNAL DIRECTS THAT this appeal is dismissed

AND that there is to be no direction as to costs

NICHOLAS ALEKSANDER

Chairman

Release Date: 11 September 2007

© CROWN COPYRIGHT 2007