The First Tier Tribunal has dismissed the appeal from Taha Osman against a penalty notice from HMRC for inaccuracies in the VAT returns of his takeaway businesses as a result of standard-rated sales having been mischaracterised as zero-rated sales.

Osman was the sole director of a takeaway food shop in Salford which was incorporated in 2017.

After visiting the shop and the company’s accountant, HMRC issued an assessment for £56,140 on 5 July 2019 under section 73 Value Added Tax Act (VATA) 1994.

HMRC also found that in regard to records, Z-readings were taken from the till each day to reconcile the cash in the till, but these were not retained and that till rolls were not retained. The business also only accepted payments in cash.