20471
LONDON TRIBUNAL CENTRE				Reference No: LON/2007/1212

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								Appellant/Applicant

								Respondents

	STIKATAK LIMITED	Appellant

	- and -

	THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS	 Respondents

	Tribunal: NICHOLAS ALEKSANDER (Chairman)
                                                            PRAFUL DAVDA        	      

	Sitting in public in London on  21 November 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 Mrs Thakrar, a director of the Appellant, for the Appellant and Simon Chambers, 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 by their said representatives stating pursuant to Rule 30(8) of the Value Added Tax Tribunals 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 Appellant attempted to pay the VAT due in respect of the return for the period January 2007 to March 2007 via Barclays Bank’s online banking system which the Appellant knew takes three working days.  The due date by which payment had to reach the Respondents for this return was 30 April 2007, 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 May 2007 (but as this was a bank holiday the payment would have to reach the Respondents’ account on 4 May 2007).  The Appellant thought that the time for payment was extended by seven business days, and the payment reached the Respondent’s account on 8 May 2007.  However it is clear from the notice on the reverse of the VAT return and from the Respondents’ online terms and conditions that the extension for electronic payments is seven calendar days.  The online terms (which the Appellant acknowledges in agreeing to make online payments) also makes it clear that in the event of the due date falling on a weekend or public holiday, the payment must reach the Respondents by the previous working day.  Accordingly the Appellant 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: 30 November 2007

© CROWN COPYRIGHT 2007