TC09619 - [2025] UKFTT 01020 (TC)

The parties accept that it is up to HMRC to establish that the discovery assessments were validly made and served on the appellant and reflect a subjectively and objectively valid discovery made by an HMRC officer. It is also up to HMRC to establish they opened a valid enquiry and subsequently closed it by issuing valid closure notices which were properly served on the appellant. The standard of proof is the balance of probabilities.

If HMRC can establish the validity of the foregoing, then the burden of proving that they overcharge the appellant, rests with the appellant. He must establish that it is more likely than not that they overcharge him.

The same principle applies to the penalty. It is up to HMRC to prove deliberate or careless behaviour on the part of the appellant. Again, the standard is the balance of probabilities.