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Default Surcharges


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27th June 2013

A timely reminder about ensuring that VAT returns are lodged and paid on time is in a case where a taxpayer unsuccessfully appealed against a default surcharge penalty due to a ‘late’ VAT payment over a bank holiday.

The taxpayer appealed on the grounds that a late payment was sent due to a bank holiday. The Tribunal rejected its appeal on the grounds that it was not a reasonable excuse and that the business should have factored this in.

Remember that to be ‘in time’ payments need to be in HMRC’s account on or before the 7th calendar day of the month following the VAT return due date (e.g. June 2013 VAT quarter ends have to be paid no later than 7th July 2013) and that if 7th July falls on a weekend or bank holiday the business needs to factor that in. Surcharges can of course be appealed where there is a ‘reasonable excuse’ but timing is usually not acceptable as such an excuse.

About the Author

The VAT People are leading VAT and Customs Duty consultants based in the North West of England. We work with a wide range of businesses throughout the UK as well as assisting our accountancy colleagues to unravel the thorny VAT issues for their clients. We are one of the UK's largest and most comprehensive sources of VAT and Customs advice, our consultancy team having over 140 years of experience in VAT and Customs gained in either HMRC or a Big 4 accountancy practice environment.

Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.

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Article Published/Sorted/Amended on Scopulus 2013-07-04 12:30:27 in Tax Articles

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