Application to admit new evidence

The taxpayer appealed against the First-tier Tribunal’s decision to uphold a best judgment assessment by HMRC for under-declared VAT from takings from its fish and chip shop. The Upper Tribunal had twice refused the taxpayer’s application for permission to appeal the decision but he was finally allowed to do so on credit card transactions reflected in HMRC’s best judgment assessment.

After a VAT inspection and several test purchases HMRC concluded that card sales after 8pm were not entered on the till. The officer issued a VAT assessment and penalty based on the daily till records. The taxpayer wished to offer new evidence consisting of originals of till rolls and records relating to card purchases. These had been removed by HMRC and only returned shortly before the hearing of the taxpayer’s application for permission to appeal.

The Upper Tribunal noted that the taxpayer had asked HMRC to return these items...