HMRC stumped in ECB VAT surcharge battle

Following a decision by a first-tier tribunal, it has been agreed that HMRC has been stumped in its £100,000 VAT match against the England and Wales Cricket Board (ECB), ruling that a surcharge liability notice (SLN) was not received by the board.

In October 2015, HMRC upheld a VAT default surcharge dated 15 June for £106,602, however this was challenged by the ECB claiming that they had not received a SLN.

The ECB paid a VAT liability three days late. However, under the ‘payment on account’ (POA) regime, it was raised that HMRC needed to provide a SLN in order to enforce a default surcharge, which the ECB claim they didn’t receive.

A ECB employee witness statement stated that “he had no recollection of ever having received the 19 June 2014 SLN” which HMRC claimed to have sent.

The ECB rested its case based on previous case studies Customs and Excise Commissioners v Medway Draughting and Technical Services Ltd [1989] STC 346, in which the VAT and duties tribunal ruled in the favour of the appellant, confirming that HMRC did not send the SLN in time.

The tribunal found that although the SLN was prepared and addressed correctly, it was not sent pre-paid.

Recently HMRC won a lengthy VAT battle against Mexican restaurant chain Chilango, while deciding to drop its overpaid VAT legal case with NHS Trusts.

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