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Conditions for valid HMRC discovery assessments were not met

By Mark McLaughlin, November 2024

An appeal against discovery assessments issued following a telephone conversation between an HMRC officer and the appellant was allowed, as there was insufficient evidence that the discovering officer had satisfied either the subjective or objective tests for making a valid discovery.  

The appellant was employed in the water industry. He undertook extensive business mileage and incurred business subsistence expenses on such items as dining and hotels. He paid these from private resources and claimed them back from his employer. He completed expenses sheets, which he would submit to his employer.  

It became apparent to the appellant that the employer was not repaying him all the expenses he incurred from his personal funds. The appellant appointed an agent (A). He forwarded to A the completed expense sheets sent to his employer and instructed A to compile his tax returns. When A completed a tax return it would be sent to the

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