Analysis of First-tier Tribunal decision Keighley and another

The recent case of Keighley and another (TC9023) heard at the First Tier Tribunal brings up points around deliberate and careless behaviour and how this affects the time limit in which an assessment can be raised as well as the penalties that may apply.

The case was multi-faceted and put three issues before the tribunal one concerning personal expenditure on company credit cards another relating to the withdrawal of petty cash and the third relating to loan relationships.

The credit card issue

On the first matter James Keighley a director at Primeur Limited admitted to meeting his personal expenditure using company credit cards. Mr Keighley did not make any reimbursement to the company for these costs nor were adjustments made in the company’s accounts and his tax return did not report the expenditure as additional income.

HMRC...