In W Chapman v HMRC (TC01593 – 6 December) a trader (C) carried on a business of repairing motor vehicles. HMRC began an enquiry into his return for 2006/07 which declared turnover of £42 777. They subsequently issued a closure notice amending his return to charge additional tax of £17 663 (on the basis that his turnover for the year had been more than £94 000) and also issued estimated assessments for 2004/05 2005/06 and 2007/08 computed by applying the RPI to the estimated turnover for 2006/07. C appealed contending that much of his income in 2006/07 had derived from gambling winnings. The First-tier Tribunal reviewed the evidence in detail and substantially allowed his appeal. Judge Reid found that HMRC’s estimate of C’s turnover for 2006/07 was ‘wholly unrealistic’ since it suggested that ‘there would have to have been a...
