20336
LONDON TRIBUNAL CENTRE				Reference No: LON/2007/379

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								Appellant/Applicant

								Respondents

	M HARRINGTON AND M JONES T/A THE STATION	Appellant

	- and -

	THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS	 Respondents

	Tribunal: NICHOLAS ALEKSANDER (Chairman)
				     TYM MARSH				      

	Sitting in public in London on 27 June 2007

	DIRECTION
under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Default Surcharge being a reasonable excuse appeal as defined by Rule 2 of the Value Added Tax Tribunals Rules 1986 coming on for hearing today

AND UPON HEARING the Appellants in person and Gloria Orimoloye, Advocate, of the Solicitors Office of HM Revenue & Customs for the Respondents

AND THIS TRIBUNAL having heard this appeal under Rule 26(2) and having announced its decision

AND THE parties present at the hearing or by their said representatives stating pursuant to Rule 30(8) of the Value Added Tax Tribunal Rules 1986  that they do not require the said decision to be recorded in a written document in accordance with Rules 30(1)

THIS TRIBUNAL FINDS THAT the Appellants paid the VAT due in respect of the return for the period May 2006 to July 2006 on 7 September 2006 via the BACS system.  The due date by which payment had to reach the Respondents for this return was 31 August 2006, but was extended by seven days (in accordance with the statement on the reverse of the VAT return) in the case of electronic payments until 7 September 2006.  The payment did not reach the Respondents’ account until after the due date, as extended.  The statement on the Return refers to Notice 700, which clearly distinguishes between CHAPS and BACS payments and the difference in the time they take to be processed.  Accordingly the Appellants did not have a reasonable excuse for their default

AND THIS TRIBUNAL DIRECTS THAT this appeal is dismissed

AND that there is to be no direction as to costs

NICHOLAS ALEKSANDER
	Chairman
	Release Date: 11 September 2007

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