Lancer Scott Limited, a construction company based in Bristol, applied for a £551,695 reduction in input tax for the quarterly VAT tax periods 09/06 to 12/09.
This was denied by HMRC, but Francis Clark, the company’s tax advisers, requested a review in February 2018. HMRC rejected the review and the company submitted an appeal to the First Tier Tribunal (FTT) in June 2018.
On 25 September 2019, HMRC issued a £126,186 penalty, which was also appealed by the appellant, and both issues were heard at the tribunal in Bristol.
Lancer Scott was attempting to claim the input tax for the supply of ‘goods and services, namely the purchase of building supplies and hire of equipment’ from Wilfred Folwell. In total the appellant had sent Folwell £3.9m over a period of 41 months.
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