WWM ROSE & SONS LTD v Revenue & Customs (VAT - Default Surcharge - late payment of VAT)

VAT - Default Surcharge - late payment of VAT - date of collection of direct debit payments by HMRC - Whether this date changes the statutory due date for payment of VAT - no - Whether Time to Pay arrangement requested or agreed prior to due date - no - Whether payment of VAT late - yes - Whether reasonable excuse established - no - Appeal dismissed

For the Respondents: �� Ms Amy Cook, litigator of HM Revenue and Customs� Solicitor�s Office

             The Appellant appeals against a VAT default surcharge issued by HMRC, pursuant to s. 59 of the Value Added Tax Act 1994 (hereinafter referred to as �VATA�). The default surcharge was issued in respect of the late payment of VAT for the period 01/22, as follows:

             The Appellant is a limited company and its business activity is the wholesale of agricultural machinery, equipment and supplies. Mr Ian Rose is one of four directors.� The Appellant is a taxable person and has been registered for VAT with effect from 6 December 1976, and submits VAT returns on a quarterly basis. The Appellant�s normal method of payment is National Direct Debit Service (�NDDS�).

             The due date for the VAT return and payment for the period 01/21 was 7 March 2021. The Appellant�s VAT return was received on 5 March 2021. The total amount of VAT due was �84,078.50. VAT was paid on multiple dates via NDDS. On 12 March 2021, a Surcharge Liability Notice (�SLN�) was issued to the Appellant by HMRC, giving a surcharge period of 12 March 2021 to 31 January 2022.