Swiss Dawn Consultants Ltd v HMRC

In Swiss Dawn Consultants Ltd v HMRC [2021] UKFTT 391 (TC) (1 November 2021) the FTT held that in an appeal against a ‘best of judgment’ assessment the burden lies on the taxpayer to establish the correct amount of tax due. HMRC’s imperfect customer service had caused some stress to the taxpayer but the FTT did not have jurisdiction to consider HMRC’s conduct.

In December 2017 HMRC wrote to the taxpayer to begin a review into the company's VAT returns. The taxpayer was authorised to use the flat rate scheme. Its business category was the 14% rate for management consultants reduced to 13% in its first year of using the scheme.

The director made two basic errors in her calculations. First she accounted for flat rate scheme tax by applying the 13% and 14% rate to her net rather than gross sales;...

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