In an Upper Tribunal, Alan Harford, director of Northside, disputed HMRC’s decision to refuse claims to recover input tax on purchases of certain vehicles in VAT for the periods 01/17 to 07/17, amounting to £470,715.99 in output tax.

HMRC justified its decision to deny Northside credit for input tax because the company had purchased vehicles which were connected to fraudulent evasion.

Northside was incorporated on 5 December 2011 and registered for VAT from 1 April 2012. Harford acted as the sole shareholder and director of the company.

He appointed accountants SB&P to manage his VAT affairs and was subjected to periodic VAT checks by HMRC.