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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
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
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