In the FTT case, Neoterick UK Limited appealed against an assessment of £45,024.90 related to VAT charges.

Neoterick UK owned a Subway in Stowmarket, Suffolk, run by Pradeep Thirunavukkarasu, the sole director.

The company was incorporated on 21 November 2012 and started trading on 15 January 2014.

Following scheduled visits on 5 and 13 October 2017, HMRC wrote to Neoterick indicating that a VAT assessment would be issued to address what appeared to be ‘serious under-reporting’ of standard-rated supplies.

HMRC issued an assessment for underpaid VAT for the periods 01/14 to 07/17, concerning a three-year discrepancy over VAT on sales.