Summary
This was an appeal against HMRC’s decision that the Appellant, a hairdresser, was liable to be registered for VAT from 1 June 2006.
Following a check of the Appellant’s self-assessment records in 2011, it appeared that the levels of goods purchased for use in the Appellant’s business did not reasonably correlate to the declared sales. Further enquiries and an examination of the Appellant’s records and cash book for the year ending 31 March 2011 showed that turnover to 16 March 2011 was £70,800, which was in excess of the VAT threshold of £70,000 for that year with two weeks trading remaining.
Records for the year ending 31 March 2009 were not available, but the accounts and the Appellant’s self-assessment showed purchases and stock at similar levels, as did accounts for the years to 31 March 2006 and 2007.
Background
