TC09555 - [2025] UKFTT 00748 (TC)

On the basis of our findings it is plain to us that 3KH was obstructive of HMRC’s enquiry. 3KH denied lawful access of officers on both 20 July and 23 August 2017 and it took until 14 November 2017 until any till data could be accessed. There were subsequently further difficulties in accessing further till information.

We accept that the brief articulation narrated in the penalty assessment letters could have been more accurate (particularly that for the corporation tax inaccuracy). However, 3KH were well aware of what had happened at each of the visits, they had not helped HMRC, in fact quite to opposite. We were not invited to increase the penalty amount (though we have the jurisdiction to do so under paragraphs 15(2) and 17(2) Sch 24 FA07) and we do not do so, we simply note that a 10% allowance (of a maximum of 40%) appears to us to have been reasonably generous.

We therefore uphold the Penalties in full.

For the reasons given we uphold the VAT and Further VAT Assessments, the Discovery Assessments, the NICs Decisions, the Penalties, and the PLNs in the sums in which HMRC invited that they be upheld.

This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.