In Peter N Jackson v HMRC [2015] UKFTT 221 (13 May 2015) the FTT accepted the taxpayer’s explanation for what did look like undeclared takings.
Mr Jackson hired out limousines. During an enquiry HMRC had noticed the low ratio of cash to card payments – £900 and £10 323 respectively. On the basis that Mr Jackson’s terms required cash payments on the night HMRC had concluded that takings had been underdeclared and had issued an assessment accordingly.
At the hearing Mr Jackson explained that his was mainly a card payment business. Most of his work involved groups of young people who paid at the end of the evening by offering several credit cards. Furthermore HMRC’s assumption that longer journeys generated higher fees was wrong. This was because long journeys had to meet competitors’ rates even when this produced only a small profit. Finally ...
