Marble Commercial Contracting Limited TC 0656 [2018] – Default Surcharge

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The First Tier Tribunal has dismissed the appeal in relation to the default surcharge where the appellant failed to make a payment under the payment on account regime.

The appellant paid their VAT electronically to HMRC on the 7th day of the month following the end of the VAT period. However, as the appellant was registered to pay VAT under Payments on Account scheme (POA), VAT liability is required to be paid by the last day of the month following the end of the VAT period. This is slightly different as the additional 7 days normally allowed by electronic payments is not allowed for businesses subject to Payments on Account regime.

The taxpayer had put forward several reasons and excuses for the late payment including staffing problems, bank not processing payments on the last day and misunderstanding. These were not considered valid by the Tribunal and the appeal was dismissed.

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