.png)
.png)
After an employer compliance review into the taxpayer companies’ PAYE, HMRC decided the businesses, which operated bus travel services, had underpaid tax and National Insurance. The department issued assessments and imposed penalties.
The Revenue said each company had failed to declare all payments made to directors and employees. For example, interviews had been held with individuals who claimed they were paid in cash for work done as drivers.
The taxpayer companies appealed.
The First-tier Tribunal found that, on balance, the taxpayers’ records were not accurate, and furthermore the company director was not a credible witness. HMRC had shown he had been negligent in his record-keeping and the penalties were appropriate.
The taxpayer companies' appeal was dismissed.
