In G Singh v HMRC [2016] UKFTT 643 (19 September 2016) the FTT found that HMRC had been right to disallow a claim for input tax because of insufficient evidence.
Mr Singh was a sole trader selling carpet and furniture from a warehouse in Smethwick Birmingham. It was not an affluent community and the carpets were generally factory soiled or remnants and the furniture was of low value so that these items were affordable to local residents. He appealed against a disallowance of input tax in relation to works carried out at his warehouse and the imposition of a penalty.
The FTT accepted that the invoices produced by Mr Singh to justify the input tax deduction were invalid as they were too general (VATA 1994 s 14). HMRC had therefore been correct to consider whether to allow the deduction on the basis of other evidence under the VAT...
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