Reasonable action

The taxpayer a bookkeeper with self-employed and employed income submitted his 2003-004 self-assessment tax return which during a meeting with HMRC he admitted contained incorrect figures.

He provided a revised profit and loss account but claimed he had no business records as all the paperwork had been passed to his accountant who was too ill to be contacted.

HMRC made an assessment based on the information they held. The taxpayer appealed.

The appeal went to the Special Commissioner. Although he did not attend the taxpayer afterwards produced a copy form P60 in respect of one of his sources of income.

At the appeal the Special Commissioner found there was very little evidence and that the taxpayer had provided no information to show that HMRC’s assessment was wrong.

He said that HMRC had acted reasonably in using one of the lowest figures...