Findings for appeal

The appellant worked as a self-employed chauffeur for PCS and had emigrated in early 2008. Figures supplied by PCS showed payments of more than £40 000 made to the appellant in 2004 £32 000 of which related to 2004/05.

However the appellant did not include that income in his 2004/05 return and had not notified HMRC he was self-employed.

The Revenue enquired into the return and amended it to include the sum from PCS. This resulted in additional tax of £8 832 being due. The taxpayer appealed against the amendment to his return.

The First-tier Tribunal was satisfied the appellant should have understood the need to keep records and that he had underdeclared his earnings. HMRC’s approach had been reasonable in the circumstances and calculated the correct taxable profit.

The taxpayer’s appeal was dismissed.

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