Hooper (t/a A to Z of Signs v Revenue & Customs [2006] UKVAT V19753 (04 September 2006) 

19753

SECURITY – bad payment record – outstanding debt – whether demand reasonable – yes – appeal dismissed.

LONDON TRIBUNAL CENTRE

MARK HOOPER T/A A TO Z OF SIGNS	Appellant

- and -

THE COMMISSIONERS FOR HER MAJESTY’S
REVENUE AND CUSTOMS	Respondents

Tribunal:	DR JOHN F AVERY JONES CBE (Chairman)
MRS E R ADAMS FCA ATII

Sitting in public in London on 4 September 2006

The Appellant did not appear and was not represented

Jonathan Holl, senior officer, HM Revenue and Customs, for the Respondents

© CROWN COPYRIGHT 2006

DECISION

1.	Mr Mark Hooper trading as A to Z of Signs appeals against a requirement to give security of £9,563.10 (or £7,848.68 if monthly returns).  The Appellant did not appear and was not represented.  Mr Jonathan Holl represented Customs.
2.	We heard evidence from Mrs Linda Andrews, the officer issuing the security demand.  We find the following facts:
(1)	In the period since 08/02 the Appellant has been in default with payment on 12 occasions, with delays up to 835 days late with seven being over 100 days late.  In 2004 bankruptcy proceedings were taken for a debt of £40,000 which was paid and the proceedings were withdrawn.
(2)	The current debt at the time of the demand was £4,419.84.  The Appellant offered to pay this off at £500 per month but this was refused.  Customs would accept without prejudice payments but none has been paid.  Currently returns are being made on time and the amount paid.
(3)	The security is calculated on the usual basis of 6 months’ VAT of £5,143.26 plus the outstanding debt of £4420 (or 4 months’ VAT of £3,428.84 plus the outstanding debt.
(4)	The security demand was made on account of the bad record of payment in the past, the issue by the Appellant of three unpaid cheques in the year before the demand, and the lack of payment of the arrears.
3.	The question for us is whether the demand was reasonable.  We have no hesitation in saying that it is reasonable.  We dismiss the appeal.
4.	As the Appellant did not appear he has 14 days from the date of release of this Decision in which to apply to the Tribunal for reinstatement of the appeal giving reasons why he did not attend today.  Customs have undertaken not to take any action over this Decision during that period.

JOHN F. AVERY JONES

CHAIRMAN
RELEASE DATE: 4 September  2006

LON/06/0295