How unfare!

The appellant Stephen Ho was a taxi driver who plied his trade from Heathrow airport. HMRC had enquired into Mr Ho’s 2003/04 self assessment return and concluded that takings had been understated. Turnover for the year was increased and an additional liability of £3 367.80 arose.

Furthermore discovery assessments had been made for 2002/03 2004/05 2005/06 and 2006/07.

Mr Ho appealed against the assessments and accepted HMRC’s offer of a statutory review following which the discovery assessments for 2000/01 and 2001/02 were withdrawn and an adjustment was made to the manner in which the increased assessable profits had been determined.

Mr Ho appealed to the First-tier Tribunal against the assessments.

Two issues were raised within this case:

1. Did Mr Ho underestimate his takings for the year ended 30 April 2003 (assessable in 2003/04)?
2.  Had HMRC discovered a...