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Conclusions
DECISION
We therefore dismiss this appeal.
RIGHT TO APPLY FOR PERMISSION TO APPEAL
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.
Release date: 21st AUGUST 2025
APPENDIX 1
THE LEGISLATION
TMA
Section 29 Taxes Management Act 1970 (“TMA”) provided:
If an officer of the Board or the Board discover, as regards any person (the taxpayer) and a year of assessment—
that any income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax, have not been assessed, or
that an assessment to tax is or has become insufficient, or
at any relief which has been given is or has become excessive, the officer or, as the case may be, the Board may, subject to subsections (2) and (3) below, make an assessment in the amount, or the further amount, which ought in his or their opinion to be charged in order to make good to the Crown the loss of tax.
…
Where the taxpayer has made and delivered a return under section 8 or 8A of this Act in respect of the relevant year of assessment, he shall not be assessed under subsection (1) above—
in respect of the year of assessment mentioned in that subsection; and
in the same capacity as that in which he made and delivered the return, unless one of the two conditions mentioned below is fulfilled.
The first condition is that the situation mentioned in subsection (1) above was brought about carelessly or deliberately by the taxpayer or a person acting on his behalf.
The second condition is that at the time when an officer of the Board—
informed the taxpayer that he had completed his enquiries into that return,
the officer could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in subsection (1) above.
For the purposes of subsection (5) above, information is made available to an officer of the Board if—
it is contained in any claim made as regards the relevant year of assessment by the taxpayer acting in the same capacity as that in which he made the return, or in any accounts, statements or documents accompanying any such claim;
it is contained in any documents, accounts or particulars which, for the purposes of any enquiries into the return or any such claim by an officer of the Board, are produced or furnished by the taxpayer to the officer …; or
it is information the existence of which, and the relevance of which as regards the situation mentioned in subsection (1) above—
could reasonably be expected to be inferred by an officer of the Board from information falling within paragraphs (a) to (c) above; or
are notified in writing by the taxpayer to an officer of the Board.
In subsection (6) above—
any reference to the taxpayer's return under section 8 or 8A of this Act in respect of the relevant year of assessment includes—
a reference to any return of his under that section for either of the two immediately preceding chargeable periods;…
(ia) …; and
where the return is under section 8 and the taxpayer carries on a trade, profession or business in partnership, a reference to any partnership return with respect to the partnership for the relevant year of assessment or either of those periods; and …
Section 34 TMA provided:
Subject to the following provisions of this Act, and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case, an assessment to income tax,capital gains tax or to tax chargeable under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003 may be made at any time not more than 4 years after the end ofthe year of assessment to which it relates.
An objection to the making of any assessment on the ground that the time limit for making it has expired shall only be made on an appeal against the assessment.
Section 50 TMA provided:
(1)– (5) . . .
If, on an appeal notified to the tribunal, the tribunal decides—
that, . . ., the appellant is overcharged by a self-assessment;
that, . . ., any amounts contained in a partnership statement are excessive; or
that the appellant is overcharged by an assessment other than a self-assessment, the assessment or amounts shall be reduced accordingly, but otherwise the assessment or statement shall stand good.
If, on an appeal notified to the tribunal, the tribunal decides—
that the appellant is undercharged to tax by a self-assessment . . .;
that any amounts contained in a partnership statement . . . are insufficient; or
that the appellant is undercharged by an assessment other than a self-assessment, the assessment or amounts shall be increased accordingly.
Where HMRC have opened an enquiry into taxpayer’s self-assessment tax return, the enquiry is completed when an HMRC officer “informs the taxpayer by notice (a “final closure notice”) …that the officer has completed his enquiries”. (Section 28A (1B) Taxes Management Act 1970 (“TMA”).
A final closure notice must state the officer’s conclusions and “make the amendments of the return required to give effect to his conclusions”. (Section 28A (2) TMA)
Under section 31 TMA an appeal may be brought against–
any conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act (amendment by Revenue on completion of enquiry into return),
any amendment of a partnership return under section 30B(1) of this Act (amendment by Revenue where loss of tax discovered), or
any assessment to tax which is not a self-assessment.
Section 336 Income Tax (Earning and Pensions) Act 2003 (“ITEPA”) provided:
The general rule is that a deduction from earnings is allowed for an amount if—
the employee is obliged to incur and pay it as holder of the employment, and
the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment.
APPENDIX 2
THE SA HISTORY
On 18 June 2019, the Appellant submitted his tax return for the tax year 2018/19. The return showed an income of £30,070.00, with expenses totalling £12,260.00. The tax overpaid was £2,295.00.
On 29 June 2019, the Appellant submitted his tax return for the tax year 2016/17. The return showed an income of £27,130.00, with expenses totalling £9,970.00. The tax overpaid was £1,884.00.
On 29 June 2019, the Appellant submitted his tax return for the tax year 2017/18. The return showed an income of £27.657.00, with expenses totalling £9,965.00. The tax overpaid was £1,883.60.
For the tax year 2019/20, there were several amendments made:
On 24 May 2022, the Appellant submitted his tax return for the tax year 2019/20 (Version 1). The return showed an income of £34,637.00, with expenses totalling £12,560.00. The tax overpaid was £2,964.60.
On 12 October 2022, the Respondents amended the tax return for the tax year 2019/20 (Version 2). The return showed an income of £34,637.00, with expenses totalling £60.00. The tax due was £2,442.20.
On 03 November 2022, the Respondents amended the tax return for the tax year 2019/20 (Version 3). The return showed an income of £34,637.00, with expenses totalling £12,560.00. The tax overpaid was £2,964.60.
On 05 March 2024, the Respondents made a revenue amendment with the issue of the closure notice for the tax year 2019/20 (Version 4). The return showed an income of £34,637.00, with expenses totalling £60.00. The tax due was £2,442.20.
For the tax year 2020/21, there were several amendments made:
On 13 April 2021, the Appellant submitted his tax return for the tax year 2020/21 (Version 1). The return showed an income of £32,262.00, with expenses totalling £12,809.00. The tax overpaid was £107.40.
On 13 April 2021, the Appellant amended his tax return for the tax year 2020/21 (Version 2). The return showed an income of £32,262.00, with expenses totalling £12,809.00. The tax overpaid was £107.40.
On 02 April 2022, the Appellant amended his tax return for the tax year 2020/21 (Version 3). The return showed an income of £32,262.00, with expenses totalling £12,809.00. The tax overpaid was £2,715.40.
On 17 September 2022, the Appellant amended his tax return for the tax year 2020/21 (Version 4). The return showed an income of £32,262.00, with expenses totalling £17,000. The tax overpaid was £945.60.
On 12 October 2022, the Respondents amended the tax return for the tax year 2020/21 (Version 5). The return showed an income of £32,262.00, with no expenses. The tax due was £2,454.40.
On 03 November 2022, the Appellant amended his tax return for the tax year 2020/21 (Version 6). The return showed an income of £32,262.00, with expenses totalling £17,000. The tax overpaid was £945.60.
On 05 March 2024, the Respondents made a revenue amendment with the issue of the closure notice for the tax year 2020/21 (Version 7). The return showed an income of £32,262.00, with expenses totalling £60.00. The tax due was £2,442.40.
For the tax year 2021/22, there were several amendments made:
On 01 May 2022, the Appellant submitted his tax return for the tax year 2021/22 (Version 1). The return showed an income of £37,521.00, with expenses totalling £13,410.00. The tax overpaid was £3,368.80.
On 02 May 2022, the Appellant amended his tax return for the tax year 2021/22 (Version 2). The return showed an income of £37,521.00, with expenses totalling £13,410.00. The tax overpaid was £3,368.80.
On 24 July 2022, the Appellant amended his tax return for the tax year 2021/22 (Version 3). The return showed an income of £37,521.00, with expenses totalling £15,910.00. The tax overpaid was £619.80.
On 15 September 2022, the Respondents amended the tax return for the tax year 2021/22 (Version 4). The return showed an income of £37,521.00, with expenses totalling £60.00. The tax due was £2,550.20.
On 16 September 2022, the Appellant amended his tax return for the tax year 2021/22 (Version 5). The return showed an income of £37,521.00, with expenses totalling £18,060.00. The tax overpaid was £1,049.80.
On 12 October 2022, the Respondents amended the tax return for the tax year 2021/22 (Version 6). The return showed an income of £37,521.00, with expenses totalling £60.00. The tax due was £2,550.20.
On 03 November 2022, the Appellant amended his tax return for the tax year 2021/22 (Version 7). The return showed an income of £37,521.00, with expenses totalling £15,910.00. The tax overpaid was £619.80.
On 05 March 2024, the Respondents made a revenue amendment with the issue of the closure notice for the tax year 2021/22 (Version 8). The return showed an income of £37,521.00, with expenses totalling £60.00. The tax due was £2,550.20.