Costs ruling justified

The taxpayer company incorporated in 2007. It described itself as a general builders plant hirers and material suppliers. G was the sole director.

The business submitted claims for input tax in respect of 54 invoices from four companies with whom G was connected.

HMRC refused the claims on the basis they did not comply with legislation and the department was not satisfied that the transactions had taken place.

The First-tier Tribunal dismissed the taxpayer’s appeal.

The company argued that the tribunal did not give proper consideration to the evidence and had erred in law by granting an order of costs against the firm.

The Upper Tribunal said the First-tier Tribunal had provided clear detailed reasons for rejecting the director’s evidence and had given sufficient attention to other evidence.

The Upper Tribunal went on to support the costs ruling in favour of HMRC. The first tribunal had concluded...