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Self-Employed Taxpayer’s Declared Profits Were Understated

By Mark McLaughlin, January 2017
Summary

The appellant’s business tax records were inadequate, the declared turnover in his tax returns was understated, and the ‘presumption of continuity’ was considered to apply for further tax years in the absence of evidence to rebut that presumption. 

Background

The appellant was a self-employed painter and decorator. Following enquiries into the appellant’s tax returns, HM Revenue and Customs (HMRC) considered that there was a shortfall in his declared turnover and profits. HMRC issued closure notices (under TMA 1970, s 28A) for 2010/11 and 2012/13, and discovery assessments (under s 29) for the four tax years from 2006/07 to 2009/10 (based on the closure notice for 2010/11), and for 2011/12 (based on the closure notice for 2012/13). Penalty assessments and determinations were also issued. The appellant appealed.

The First-tier
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