20313
LONDON TRIBUNAL CENTRE
Reference No: LON/2007/337

Copy sent to:

Appellant/Applicant

Respondents

ASHCROFT ENVIRONMENTAL LIMITED	Appellant

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THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS	 Respondents

Tribunal: RODNEY P HUGGINS (Chairman)
DR MICHAEL JAMES

	Sitting in public in Plymouth on 7 August 2007

	DIRECTION
under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a surcharge assessment dated 15 December 2006 in the sum of £10,291.27 and being a reasonable excuse appeal as defined by rule 2 of the Value Added Tax Tribunals Rules 1986 as amended coming on for hearing this day

AND UPON HEARING A Frederick Smith for the Appellant and Pauline Crinnion, Advocate for the Respondents

AND THIS TRIBUNAL having heard this appeal and having announced its decision 

AND THE parties present at the hearing by their said representatives stating pursuant to Rule 30(8) of the Value Added Tax Tribunals Rules 1986 as amended that they do not require the said decision to be recorded in a written document in accordance with Rule 30(1) of the said Rules

THIS TRIBUNAL FINDS THAT the Appellant does have a reasonable excuse for part of the default which resulted in the Respondents making the assessment under appeal

The tribunal further finds that the Appellant’s Accountant telephoned the Respondents’ local debt management unit on 6 December, 2006 and stated the Appellant wished to pay its VAT for the last quarter in two instalments.  He was told that if he put a cheque for £35,608.47 in the post immediately with a covering letter that would be in satisfaction of part of the VAT due in the sum of £68,608.47.  The remaining balance could be paid at a later date.  It was implied this could be subject to a default surcharge

2

If the Appellant had not been informed of this procedure it would have paid the sum through its Bank electronically to arrive by the due date of 7 December 2006

Therefore, the tribunal finds that although the sum of £35,608.47 was not received by the Respondents until 11 December 2006 having been posted by the deadline, this is a reasonable excuse for the payment of £35,608.47

The Appellant is therefore in default in respect of £33,000 for the 10/06 Return and a surcharge of £4,950 is payable in lieu of £10,291.27

AND THIS TRIBUNAL DIRECTS THAT this appeal is partially ALLOWED

AND that there is to be no direction as to costs

RODNEY P HUGGINS
	Chairman
	Release Date: 22 August 2007

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