In Trinity Mirror PLC v HMRC (TC03490 – 15 April 2014) the FTT found that a £70 906 surcharge penalty imposed as a result of a one day delay in paying VAT was disproportionate.
Trinity Mirror (the publisher of newspapers and magazines) had been brought within the payments on account regime for VAT. For the first relevant period it made two payments on account on time and filed its return on time; however the balancing payment of over £5m was made one day late. HMRC served a surcharge liability notice because of the delay. During the surcharge liability period Trinity Mirror again made the payments on account on time and the balancing payment one day late.
Under VATA 1994 s 59A(4) (5)(a) Trinity Mirror was liable to a surcharge equal to 2% of the aggregate value of the two defaults. HMRC...
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In Trinity Mirror PLC v HMRC (TC03490 – 15 April 2014) the FTT found that a £70 906 surcharge penalty imposed as a result of a one day delay in paying VAT was disproportionate.
Trinity Mirror (the publisher of newspapers and magazines) had been brought within the payments on account regime for VAT. For the first relevant period it made two payments on account on time and filed its return on time; however the balancing payment of over £5m was made one day late. HMRC served a surcharge liability notice because of the delay. During the surcharge liability period Trinity Mirror again made the payments on account on time and the balancing payment one day late.
Under VATA 1994 s 59A(4) (5)(a) Trinity Mirror was liable to a surcharge equal to 2% of the aggregate value of the two defaults. HMRC...
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