Default surcharge notice was issued correctly

The taxpayer’s business was forestry and specialised construction. It had been registered for VAT from October 2012 and submitted quarterly returns. In July 2019 HMRC served a surcharge liability notice (SLN) on the taxpayer for the 5/19 period although this was later withdrawn. In July 2020 HMRC served a notice for the 5/20 period because although the return had been submitted on time the taxpayer paid some of the VAT due late. The surcharge period was extended to 31 May 2021.

A further SLN was issued for the 8/20 period because some of the VAT was again paid late. This notice extended the period to 31 August 2021.

The First-tier Tribunal dismissed the taxpayer’s appeal against the 8/20 notice. It appealed to the Upper Tribunal.

The taxpayer argued that the default surcharge (VATA 1994 s 59) could be imposed only where HMRC had made an...