The source of cash receipts paid into a company director’s personal bank account and cash purchases of vehicles was not undeclared trading takings of the appellant company as HMRC contended but were the director’s non-taxable gambling winnings.  

On 29 April 2021, HM Revenue and Customs (HMRC) wrote to the appellants requesting outstanding returns and raising initial concerns in relation to the appellant company’s accounting periods and financial years ended 2018, 2019 and 2020. The initial issue identified was a means risk associated with the second appellant,  (the company’s sole director (FW)) ), clearing a mortgage and paying a large deposit on the purchase of another property. The appellant’s agent replied and provided bank and credit card statements,