United Kingdom VAT & Duties Tribunals Decisions

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You are here: BAILII >> Databases >> United Kingdom VAT & Duties Tribunals Decisions >> Slater & Anor (t/a Achilty Hotel) v Revenue & Customs [2007] UKVAT V20383 (05 October 2007)
URL: http://www.bailii.org/uk/cases/UKVAT/2007/V20383.html
Cite as: [2007] UKVAT V20383

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Mr & Mrs C Slater (t/a Achilty Hotel v Revenue & Customs [2007] UKVAT V20383 (05 October 2007)

20383

Default Surcharge:- Taxpayer's wife unwell and taken on holiday – arrangements made with bookkeeper to forward payment electronically – bookkeeper failing to tick "same day" box – payment one day late – whether reasonable excuse – No – reliance on another not a reasonable excuse in terms of s.71(1)(b) VATA 1994.

EDINBURGH TRIBUNAL CENTRE

MR & MRS C SLATER

T/A ACHILTY HOTEL Appellant(s)

- and -

THE COMMISSIONERS FOR

HER MAJESTY'S REVENUE & CUSTOMS Respondents

Tribunal: (Chairman): T Gordon Coutts, QC

Sitting in Inverness Sheriff Court on Thursday 4 October 2007

for the Appellant(s) Mr C Slater

for the Respondents Mr R Harrison

© CROWN COPYRIGHT 2007.
 


DECISION

This is the type of case in which the absence of any discretion in relation to surcharges is to be regretted.

The facts were, as disclosed to the Tribunal by Mr Slater, that he had had an indifferent record of payment of VAT in his hotel business and was on a 10% surcharge level. He was, and is, troubled by the illness of his wife and determined on medical advice to take her on holiday in October 2005. He was aware of his VAT obligations. He made arrangements with his bookkeeper to forward the requisite payment on a date in which, had the payment box for same day payment been ticked would have avoided any difficulty and the payment would have been received on time. He relied on his bookkeeper to do this. Unfortunately the bookkeeper failed to tick the requisite box and the result was that payment was received by the Respondents a day late.

It is plain that unless there is a reasonable excuse for a late payment the surcharge regime applies. By statute however reliance on a third party by Section 71(1)(b) VATA 1994 is not a reasonable excuse.

This is the type of case which cries out for the exercise of discretion. Unfortunately in terms of the statute neither the customs officer, in this case Mr Mutch who explained his situation in writing to the Appellant, nor the Tribunal is given any discretion. Whether it is one day, one week or one month late makes no difference and whether as here the taxpayer took all possible steps to seek to organise timeous payment is again of no help to him.

It is therefore with the utmost regret standing the legislation as it is at present that this Tribunal must dismiss the appeal.

T GORDON COUTTS, QC

CHAIRMAN

RELEASE: 5 OCTOBER 2007

EDN/05/108