In DA Perks v HMRC (TC01930 – 19 April) a plumber (P) registered for VAT in 2006 but subsequently failed to charge VAT on his supplies. When HMRC discovered this they imposed a penalty under FA 2007 Sch 24 at the rate of 20% of the potential lost revenue. P appealed contending that his turnover had fallen below the threshold and his accountant had told him that he did not need to charge VAT. The tribunal dismissed his appeal finding that P had been ‘appallingly let down’ by his accountant but that he had acted ‘without reasonable care’ and that the amount of the penalty was ‘fair and reasonable’.
In DA Perks v HMRC (TC01930 – 19 April) a plumber (P) registered for VAT in 2006 but subsequently failed to charge VAT on his supplies. When HMRC discovered this they imposed a penalty under FA 2007 Sch 24 at the rate of 20% of the potential lost revenue. P appealed contending that his turnover had fallen below the threshold and his accountant had told him that he did not need to charge VAT. The tribunal dismissed his appeal finding that P had been ‘appallingly let down’ by his accountant but that he had acted ‘without reasonable care’ and that the amount of the penalty was ‘fair and reasonable’.
