Overview is not enough

The taxpayer had been involved in the early years of garage music during which time he received no payment other than expenses.

By 1997 he was being paid performance fees for acting as an MC. He also appeared on television shows and award ceremonies for which he received appearance fees and he released two CDs on which he was the performer as MC Creed.

HMRC asked the taxpayer to complete self assessment returns for the six years to 5 April 2001. He submitted returns but explained they were “an overview” of his finances.

He claimed he could not find a suitable accountant and key documents including his diary appointment books and invoices had been stolen.

The Revenue raised assessments against which the taxpayer appealed. The First-tier Tribunal found against the taxpayer saying he had acted negligently in failing to maintain records or...