The Good Pack Limited v The Commissioners for HMRC

Decision date: 17 April 2024

Neutral citation: [2024] UKFTT 338 (TC)

Overall AI summary confidence: high

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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

The Good Pack Limited appealed a VAT default surcharge of £1,115.41 for period 01/23. The Tribunal found TGPL did not prove a reasonable excuse for late filing/payment—assertions about trading difficulties, book‑keeper errors, a bounced direct debit and attempts to contact HMRC were not sufficiently evidenced. The 2% surcharge was held correctly calculated under the statutory scheme and not disproportionate, so the appeal was dismissed.

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: high

The taxpayer bears the burden, on the balance of probabilities, to prove facts amounting to a reasonable excuse; unsupported or unproven assertions (including general claims of insufficient funds or reliance on third parties such as book‑keepers) will not establish a reasonable excuse.

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 suggested it is reasonably expected that a taxpayer subject to an existing surcharge period and a time‑to‑pay arrangement should maintain internal systems to prevent a direct debit failure causing further defaults, and that the absolute size of a short delay penalty should be assessed in the context of the taxpayer’s overall VAT liabilities when considering proportionality.

Warning

Chunk contains significant repetition and duplication of the same material. Notes contain significant repetition and duplication; they appear complete on the issues decided but are noisy.

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