- MJL Contracts Ltd incurred a 2% default surcharge for late payment of £36,038
- They argued that the surcharge could only be imposed if they failed to submit their VAT return or if HMRC issued a VAT assessment
- The Upper Tribunal ruled that the surcharge was imposed simply because of MJL’s failure to pay on time
- MJL also argued that the surcharge had to be imposed by an assessment under s.76 VATA and required an HMRC officer to consider it
- The UT rejected this argument and stated that HMRC can make decisions about default surcharges on a generic basis and automate the process
- MJL’s appeal was dismissed.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
