Summary

This was an appeal in respect of a decision of HMRC disallowing bad debt relief against the appellant’s VAT account. 

Background

The facts of the case were common ground. They were:

• the appellant made sales to people who sought to purchase goods or services over the telephone and make payment by credit or debit card
• in the VAT quarter ending 31 July 2016, the appellant claimed bad debt relief in respect of goods/services purchased by customers who had supposedly made payment by credit or debit card over the telephone
• it was also common ground that the appellant had a dishonest employee who had arranged matters so that when a customer made a payment over the telephone, by