Summary
This was an appeal against an assessment for a penalty of £3,810.54 that had been assessed because HMRC considered there was an inaccuracy in the appellants’ DIY Housebuilders claim.
This was only the second case to come before the Tribunal about a penalty charged in relation to a claim under the DIY Scheme because there had only recently been a policy decision to charge penalties in cases like this. HMRC said they would welcome guidance from the Tribunal on this policy.
Background
In June 2013 the appellants submitted a claim form for a refund of VAT under the DIY scheme. The Local Compliance National DIY Team in Glasgow wrote to the appellants informing them that their claim needed to be made on a different form (VAT431C) and that they should read the notes attached very carefully, paying particular attention to the fact that
