3KH Limited, along with two of its former directors, Mauheed Johngir and Muhammed Waqas Baber, appealed to the First Tier Tribunal (FTT) against VAT and corporation tax assessments as well as penalties amassed between 2013 and 2018.

In total HMRC issued VAT assessments for £1,640,751 and corporation tax assessments for £2,124,250. Penalties were also included amounting to £1,301,103.56 for the VAT and corporation tax assessments.

Both directors were also issued with personal liability notices (PLNs) for £1,042,509 each.

All of the assessments were made after an investigation was carried out by HMRC where officers ‘identified significant suppression of cash sales leading to an under declaration of VAT and insufficiency in assessment to corporation tax’.

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