HM Revenue and Customs (HMRC) opened an enquiry into the 2010/11 tax return of the appellant, a practising barrister. In correspondence with HMRC, the appellant’s accountants acknowledged that his accounts had been prepared on the cash basis with no adjustments because the majority of the appellant’s work was carried out on a contingent fee basis.

A closure notice was sent to the appellant on 26 January 2016, which increased the appellant’s taxable profits for 2010/11. A discovery assessment for 2012/13 was also sent to the appellant dated 25 January 2016, charging additional profits to tax. The appellant appealed.