Direction to disclose documents is confirmed

The taxpayers had appealed against VAT income tax and National Insurance contributions assessments. The hearing was set for May 2020 but in March 2020 HMRC wrote to the taxpayers requesting voluntary disclosure of various documents and applied to the First-tier Tribunal for the appeal to be adjourned. In June 2020 HMRC formally applied to the First-tier Tribunal for disclosure of the documents. The documents related to the day-to-day running of six companies the personal affairs of a business associate and correspondence with the firm which had represented the taxpayers.

The First-tier Tribunal granted the application and directed the taxpayers to make the disclosures. They appealed to the Upper Tribunal.

First they said the First-tier Tribunal had been wrong to admit and rely on a letter from a liquidator of one of the companies. The Upper Tribunal agreed that the First-tier Tribunal had made two errors of...