Inadequate records
A self-employed plasterer included a summary of construction industry scheme tax payment vouchers in his returns for the years ended 5 April 2001 2002 and 2003. The vouchers did not show any amount deducted as paid for materials but he claimed a sum for materials by taking 10% of turnover and making an adjustment. HMRC launched an enquiry into the return for the year ending 5 April 2003 and requested various documents. No documents were sent so HMRC closed the enquiry and amended the taxpayer's return as they believed that he had understated his income and overstated his expenses. In June 2005 they also issued assessments in respect of the years ended 5 April 2001 and 2002 saying that although the assessments were out of time there had been a loss of tax attributable to the taxpayer's negligent conduct.
The taxpayer appealed.
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