UT (Tax & Chancery) UT/2023/00099 - [2025] UKUT 00013 (TCC)

On 21 September 2018 the Appellant submitted its 08/18 VAT return ([4]). On 2 October 2018 HMRC Officer Steve Mills requested records from the Appellant in order to clear the repayment claimed by it for that VAT period, including any purchase invoices with over £1,000 input tax ([5]).

On 8 October 2018, Mr Dave Clarke, director of the Appellant, replied by sending Officer Mills bank statements, a “VAT report (detailed)”; a supplier/ customer list ([6]) and eight supplier invoices, including one from Aspire Partnership Limited (“Aspire”), the Appellant’s representative at the time. The bank statements showed numerous large transfers to an account “Ref: Verity”, for example: £560,000 on 2 August 2018. Verity Ltd appeared as a supplier on the supplier list but no invoices had been produced from Verity Ltd ([6]).

On 10 October 2018 Officer Mills asked the Appellant for the Verity invoices ([7]). The Appellant replied on 11 October 2018, saying that there were no invoices from Verity Ltd; these amounts related to a consolidated amount of invoices/VAT charged by its supplier, and there could be “between 800 and 1000 invoices from different suppliers” in relation to each of the Verity amounts ([8]).

On 18 October 2018, Officer Mills emailed the Appellant saying that he needed to see the invoices making up the Verity supplies and asking for them to be provided ([9]).