A Alexander & Son (Electrical) Ltd v Revenue & Customs

VAT � default surcharge � whether late payment of VAT � Yes � whether reasonable excuse � No � Sections 59 and 71 VATA

Sitting in public at George House, 126 George Street, Edinburgh on Monday 12 January 2015

In this appeal the Appellant company was represented by two of its directors, Mr J K Alexander and his son, Mr S M Alexander.� The latter addressed us on behalf of the company.� HMRC was represented by Mrs McIntyre.

This is an appeal against a default surcharge of �10,017.12 calculated at 15% in respect of late payment of VAT for the Period 12/13.� Mrs McIntyre agreed to introduce the subject-matter of the appeal, setting out the salient aspects, and so explaining to Messrs Alexander the issues which they should address.

Mrs McIntyre then referred us to a copy of the taxpayer�s belated cheque at p8.� While dated �28-01-14�, before the due date of 31 January, HMRC�s records did not record its receipt until 19 February 2014.� For some unexplained reason it was not credited to the Appellant�s tax liabilities until 17 March 2014, about four weeks later.� (See p55.)� As payment was made by cheque, that had to be received and also cleared before 31 January 2014.� By contrast an electronic payment may be made several days later.