Codicote Quarry Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 15 March 2011
Neutral citation: [2011] UKFTT 171 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal by Codicote Quarry Ltd challenged three VAT surcharge notices for late payment (total £9,816.75). The tribunal found the company had no reasonable excuse for the late payments—cashflow problems and slow-paying customers did not suffice—and dismissed the appeal. The tribunal also held the surcharges were not disproportionate given the public interest in VAT collection.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The tribunal treated as decisive that insufficiency of funds or cashflow difficulties do not constitute a "reasonable excuse" for VAT surcharge purposes, and that prior notice of the surcharge regime (including escalation of rates) justifies enforcement where defaults continue.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal indicated (obiter) that complaints about HMRC administration or dealing with multiple offices, payment in stages, and lack of use or awareness of HMRC support services, without more, will not establish a reasonable excuse for surcharge liability.