TC09643 - [2025] UKFTT 01117 (TC)

When Mr Mack made the Assessments, he did so having reached the view that the Appellant had incorrectly calculated gaming payments due on the Free Spins. The quantum of the Assessments was calculated on the basis of the only information he had available to him as to the number of Free Spins and the associated wagers which had been waived. This information was limited to the number of Free Spins provided by two of a total of 10 games in which Free Spins had been provided. Based on these two games only he extrapolated to determine the number of Free Spins provided across all ten games. Mr Mack also lacked the information which would have enabled him to calculate the value of the gaming payment the Appellant had declared on the MR Spins. In making the Assessments, he made a number of calculation errors which required to be corrected.

Following the receipt of the Free Spin data provided by the Appellant in respect of a further six providers the Assessments for Q1 2019 – Q4 2022 were recalculated and reduced. The letter, dated 21 May 2024, notifying the reduction in the Q1 2019 – Q4 2022 Assessments stated:

“HMRC have reviewed the assessment to excise duty … notified to you on 30 March 2023 now [sic] reduce the total of those assessments as follows:

…

These have been reduced as upon review of the case so far, the figures had not been calculated to best judgment based on the figures available.”

Prior to the hearing HMRC had made no adjustment to the Assessments in respect of the RGD accounted for on the MR Spin. HMRC accepted that such an adjustment was appropriate, but the Appellant had consistently failed to provide any evidence of the sums accounted for on the MR Spins. That information was finally provided on 1 July 2025. It had not been verified by HMRC at the time of the hearing, but HMRC accept that on the basis of it, an adjustment will be made if the Assessments are upheld.