Mauheed Johngir and Muhammed Waqas Babar were directors of Two Bros Restaurant Brands Limited, which ran two restaurants, Shere Khan and Oodles N’Oodles.

This is an appeal against HMRC’s decisions to issue Johngir and Babar with personal liability notices for penalties for non-payment of VAT issued to Two Bros. The VAT assessments were originally issued for £1,321,268 but were reduced due to minor amendments to £1,187,551. The penalty was therefore 62.5% of this total, equalling £727,374.98. 

The penalties arose following an HMRC VAT visit and subsequent enquiry where HMRC discovered that till data showed discrepancies the directors failed to provide information and documents to back up the sales.