The appellant was a company director. Following a check into the company’s employer records, HMRC concluded that the company’s credit card was used for both business and private expenditure of the directors, and that the director’s loan accounts were incorrect. HMRC issued assessments to the appellant for 2006/07, 2007/08 and 2008/09. The appellant appealed.
The First-tier Tribunal (FTT) had to decide whether the private expenses paid by way of the company's credit card and bank account should be assessed on him as a benefit-in-kind. The FTT also had to consider the refusal by HMRC to allow the appellant to rewrite his director’s loan account, to effectively make good those amounts.
The appellant contended (amongst other things) that capital injected into the company by the directors outweighed their withdrawals, and that the director’s loan accounts (which were originally estimated to be overdrawn)
