The appellant, Dr Ramasamy Danapal, worked for the NHS as a full-time A&E consultant while running a private clinic.

In 2013, HMRC opened enquiries into his tax returns for 2010-11 and 2011-12 and sent Danapal several discovery assessments. At the time, Danapal was represented by his accountants, known as Firm A.

The unnamed accountancy firm agreed that there were inaccuracies in the 2010-11 tax return and that the profits should be increased by disallowing various expenses related to legal and professional fees, the cost of home office use and motoring expenses.

HMRC also looked into a claim for capital allowances for equipment costing £171,000, which was made in 2007-8.

On 11 March 2016, HMRC raised discovery assessments totalling £77,000 for three tax years, 2006-07, 2007-08 and 2009-10.