M S Resources LLP v Revenue & Customs (VAT - default surcharge)

VAT - default surcharge - payments failed to process as Faster Payment transactions - delay by one working day - whether there was effective service of the Surcharge Liability Notice - whether surcharge assessment for a default invalidated on revision - whether reasonable expectation of delivery of payment by the due date - whether reasonable excuse for mistake or mistaken belief - whether penalty disproportionate - appeal dismissed

Sitting in public at the Tribunal Centre, George House, 126 George Street, Edinburgh on 30 August 2016

Ms Mary Donnelly, Presenting Officer of HM Revenue and Customs, for the Respondents

The appellant, MS Resources LLP, appealed against two default surcharge notices, in the sum of £3,165.70 for VAT period 06/15, and in the sum of £4,942.80 for period 09/15.

Mr Mitchell, Managing Partner of the appellant, gave evidence and was cross-examined by Ms Donnelly. Ms Janie Barclay, an employee of the appellant with supervisory responsibilities of the accounts department, was present at the hearing but was not called as a witness. Nevertheless, Mr Mitchell looked to Ms Barclays to confirm certain facts to the Tribunal of which he was unsure. We accept Mr Mitchell's evidence without qualification.