Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Taxpayer’s errors were a mix of careless and deliberate

19 August 2019
Issue: 4709 / Categories: Tax cases
D Scott (TC7228)

The taxpayer was a sole trader in the healthcare industry. After an compliance visit during which HMRC identified several basic input and output tax errors that it said had been made deliberately by the taxpayer the department issued a penalty of £11 671.

Among the errors were that the taxpayer accounted for no output tax on VAT returns submitted for the periods between 2011 and 2015 but instead claimed the VAT charged on his sales invoices as input tax. There was also no input tax listing to support the amounts claimed on his returns; items such as meals and fuel were claimed that were not allowable and he claimed 100% input tax on his golf club membership fees claiming he could use meeting rooms at the club as a benefit of being a member. HMRC accepted a 10% claim could be made on the club membership but disallowed...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon