Cusworth Fabrications Ltd v Revenue & Customs [2007] UKVAT V20134 (25 April 2007) 

20134`

VAT DEFAULT SURCHARGE: Appellant did not appear – payment received late – no evidence to support the Appellant’s assertion that payment and return were  made by due date – Appeal dismissed.

MANCHESTER TRIBUNAL CENTRE

CUSWORTH FABRICATIONS LIMITED 	Appellant

- and -

HER MAJESTY’S REVENUE and CUSTOMS	Respondents

Tribunal: MICHAEL TILDESLEY OBE	 (Chairman)

Sitting in public in York on 19 April 2007

The Appellant did not appear

Bernard Hayley of the Solicitor’s Office for HM Revenue & Customs, for the Respondents

© CROWN COPYRIGHT 2007

DECISION
The Appeal
1.	The Appellant was appealing against the imposition of a default surcharge in the sum of £693 for the period 1 February 2006 to 30 April 2006.
2.	The Appellant’s ground of Appeal was that
“The VAT return and payment were sent together on 29 May 2006 to the relevant office. The VAT return and cheque were separated within the VAT offices and the cheque was subsequently lost. Cusworth Fabrications posted the particulars on time and are not responsible for the lost cheque. Therefore should not be liable for a surcharge due to late payment”.
The Hearing
3.	The Appellant did not appear. The hearing notice had been sent to the correct address. I granted the Respondents’ application to proceed in the absence of the Appellant in accordance with rule 26 of the Tribunal Rules 1986.
4.	The witness statement of Richard John Lang was received in evidence as there were no objections from the Appellant within the required time limits.
5.	 A bundle of documents was supplied by the Respondents.
The Facts
6.	The Appellant submitted a VAT return dated 29 May 2006 which was received by the Respondents on 6 June 2006 as evidenced by the date stamp. The Respondents marked the return with “0” which indicated that the Appellant had not sent a payment of VAT with the return. The Appellant paid the outstanding VAT in two instalments: £3,500 on 7 August 2006 and £3,430.01 on 14 August 2006.
Decision
7.	I am satisfied that the VAT return and payment for the period ending 30 April 2006 was received by the Respondents after the due date of 31 May 2006.
8.	The Appellant is not liable for a default surcharge if it can establish on the balance of probabilities that the return with payment was despatched at such time and in such a manner that it was reasonable to expect that it would have been received by the Respondents by the due date.
9.	The Appellant supplied no evidence to substantiate its assertion that it sent the VAT return and payment on 29 May 2006.
10.	I find that the Appellant was in default for the period ending 30 April 2006 and liable to pay a surcharge of 10 per cent of the VAT due for that period. I, therefore, dismiss the Appeal and uphold the default surcharge in the sum of £693 issued on 16 June 2006.
11.	I make no order for costs.

                                

                                 MICHAEL TILDESLEY OBE
CHAIRMAN
RELEASE DATE: 25 April 2007

MAN/