In Capital Coin Machine v HMRC (TC 03144 – 4 December 2013) the tribunal had to decide whether a taxpayer had a reasonable excuse for the late payment of VAT in circumstances where it had been unaware that its direct debit to HMRC had been cancelled.
HMRC argued that on submission of the electronic return the company would not have received the usual message that the tax would be debited from its bank account by direct debit but instead a reminder to pay electronically.
Furthermore HMRC had sent a letter to the taxpayer informing it that its direct debit had been cancelled and as this letter had not been received back HMRC had assumed that the letter had been received.
Relying on Total Technology Engineering Ltd ([2011] UKFTT 473) the tribunal noted that it had no power of mitigation however if...
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