Let down by adviser

HMRC registered the taxpayer registered for VAT on 1 May 2009 because the turnover on his self assessment return to 5 April 2009 exceeded the registration threshold. He said his sales figures had been overstated by his accountant and were below the limit.

The Revenue charged a penalty of 15% of the tax due for the late period on the basis the notification period exceeded 18 months.

The First-tier Tribunal said the tax department was entitled to base its decision to register the taxpayer on the figure in his return. It was for the taxpayer to prove the return was incorrect and he had failed to do so.

The alternative computation provided by the taxpayer was not satisfactory indicating an under-recording of receipts. His claim he had paid business expenses out of cash receipts added to the inaccuracy of daily takings.

The taxpayer’s appeal was dismissed but...