The First-tier Tribunal have dismissed an appeal against a VAT default surcharge (Godavari Consultancy Services Ltd V HMRC [2023] UKFTT 120 (TC)).
Mr Patil of the Appellant had stated that the payment of VAT for the quarter ended 31 October 2021 had been made on the 6 or 7 December 2021 (his testimony was contradictory in that respect) – the due date being 7 December 2021 – and that he had been advised in a telephone conversation with HMRC that “a ‘false surcharge’ had been issued, that the default surcharge would be cancelled and the records updated to reflect the cancellation of the default surcharge”.
However, HMRC’s internal ledger entry showed that payment was credited on 8 December 2021 – after the due date – and the record of a telephone conversation between HMRC and the Appellant on the subject made no reference to an incorrect surcharge, its cancellation or amendment of HMRC records to reflect this.
The tribunal noted that “we were not provided with any documentary evidence by the Appellant that payment was made by either 6 December 2021 or by 7 December 2021” and “The case of the Appellant is not based upon the Appellant having a reasonable excuse for the late payment of VAT. In any event, we find that the Appellant has not provided a reasonable excuse for the late payment of VAT for the period 10/21.”
The appeal was therefore dismissed and the penalty upheld in full.
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08727.html
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