Beigebell Limited appealed against two decisions relating to its VAT return for the period 10/15 at the First Tier Tribunal (FTT) after failing to persuade the Upper Tribunal at an earlier hearing.

HMRC refused a VAT repayment claim for £144,628.40 in October 2016 and issued a separate penalty charge for £3,647.68 under section 73 of the Value Added Tax Act 1994 (VATA).

Between 1 September 2015 and 8 September 2015, the appellant made six purchases of up to 1,000 memory cards from a single supplier, Online Distribution Limited, and sold these on in five deals to Hi View Trading SL. Each of these transactions was connected to a fraudulent defaulting trader or contra trader.