Finance | 3 Mar 2010

There has just been a surprising yet welcome decision from the First Tier Tax Tribunal on a VAT default surcharge case.

The default surcharge regime applies tax-based penalties (2 per cent, 5 per cent, 10 per cent, then 15 per cent) for late submission and/or payment of VAT returns. Penalties are not mitigated if the return is late by only a day or two.