A Court has upheld the amendment of £190,000 to a VAT return and a £5,405 penalty, ruling that the taxpayer had deliberately tampered with his company’s documents
The First Tier Tribunal (FTT) dismissed the appeal from contractor RNS Utilities Ltd to an amendment of £190,987 by HMRC on its VAT return and has upheld the penalty of £5,405 against the company’s managing director Neil Segger for deliberate behaviour.
RNS Utilities is a groundwork contractor in the telecommunications industry. The company’s supplies are all standard rated, however, between March 2014 and March 2017, nine of 12 of RNS Utilities VAT returns submitted were repayment returns.
HMRC carried out a compliance visit to RNS Utilities to check the company’s documentation for the accounting period ending June 2017. HMRC found that 30% of the documents were either missing or had been replaced with a different purchase, invoice, or delivery note.
