Westbury Collections Ltd v The Commissioners for HMRC

Facts

Westbury Collections Ltd, a debt collection business incorporated in February 2019 and VAT-registered from 14 February 2019, appealed against VAT default surcharges totalling £19,395.60 imposed under section 59 of the Value Added Tax Act 1994 for the late payment of VAT across ten quarters between 08/20 and 11/22. Mr Anthony Browne, the company's sole director, retained responsibility for VAT compliance himself, and both the returns and the payments were consistently late. The company had already defaulted in the 08/19, 11/19 and 05/20 quarters, a surcharge liability notice having been issued after the 11/19 quarter, so that the surcharges under appeal ran at 5%, 10% and then 15%. In his notice of appeal Mr Browne relied on the impact of the pandemic on a young business, a serviced office contract signed weeks before lockdown, difficulties with the company's Xero software after its accountant left, and a series of personal misfortunes; he also emphasised the substantial sums the company had generated for the Exchequer. The Tribunal treated these as raising reasonable excuse and proportionality, and of its own motion also considered whether the surcharge notices had been properly served. A summary decision dismissing the appeal was released on 22 May 2026, and Mr Browne's subsequent correspondence was treated as an in-time request for full findings and reasons.