Discovery assessment: information available to hypothetical officer
In A Loughrey v HMRC [2021] UKFTT 252 (TC) (7 July 2021) the First-tier Tribunal (FTT) allowed the taxpayer’s appeal against the discovery assessment because the taxpayer took reasonable care in completing his tax return relating to his termination payment and there was information to make HMRC aware of the insufficiency of tax.
The taxpayer had been made redundant in November 2013. He had always paid income tax under PAYE and had never been required to file a tax return. However as he believed that too much tax had been deducted from his pay he filed a return electronically for 2013/14. He was hampered by the fact that he no longer had access to his electronic payslips but was able to pick up the details from his P45. Based on his tax return HMRC refunded over £14 000. However...
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Discovery assessment: information available to hypothetical officer
In A Loughrey v HMRC [2021] UKFTT 252 (TC) (7 July 2021) the First-tier Tribunal (FTT) allowed the taxpayer’s appeal against the discovery assessment because the taxpayer took reasonable care in completing his tax return relating to his termination payment and there was information to make HMRC aware of the insufficiency of tax.
The taxpayer had been made redundant in November 2013. He had always paid income tax under PAYE and had never been required to file a tax return. However as he believed that too much tax had been deducted from his pay he filed a return electronically for 2013/14. He was hampered by the fact that he no longer had access to his electronic payslips but was able to pick up the details from his P45. Based on his tax return HMRC refunded over £14 000. However...
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