Too many no-sales

The taxpayer acquired a general store as a going concern. It had two tills from which the readings formed the basis of the quarterly VAT returns.

HMRC found there had been 44 768 no-sales out of a total 131 783 transactions in the period from 5 January 2008 to 28 June 2008. The department concluded the taxpayer was under-declaring takings to avoid VAT and raised an assessment against which he appealed.

He claimed there were good reasons for the number of no-sales: he had to pay lottery winnings correct errors store documents and pay staff wages. Also the Revenue had delayed responding to the appeal for three or four years and the figure assessed was excessive.

The First-tier Tribunal was not convinced by the taxpayer’s evidence. His assertion that the till was opened on a no-sales basis to serve the needs of the local...