In Banham Patent Locks Ltd v HMRC (TC01929 – 19 April) a company appealed against a default surcharge contending that it had a reasonable excuse because it had instructed its bank to make payment by CHAPS but the bank had failed to implement this instruction. The First-tier Tribunal accepted the company’s evidence and allowed its appeal.
Read more here.
Why it matters: There have been conflicting decisions on whether there is a reasonable excuse for late payment of VAT where the appellant has been let down by its bank. In this case where the company’s bank failed to implement an instruction to make payment by CHAPS the Tribunal accepted the company’s contention that it had a reasonable excuse for the late payment.
