Adrian McKiernan t/a AMK Fuels v The Commissioners for HMRC
Decision date: 25 January 2023
Neutral citation: [2023] UKFTT 80 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned Mr McKiernan's claim for repayment of VAT (£61,106) for 01/16–12/19 on coal sold at the reduced 5% rate. The Tribunal found there were no contemporaneous records for the relevant periods and later handwritten records and oral evidence were insufficiently clear or reliable to show qualifying reduced-rate sales. The appeal was dismissed and the standard-rate VAT returns were upheld.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal held that claims for repayment under s80 VATA and Regulation 37 require documentary evidence in the claimant's possession showing the amount claimed and how it was calculated; where HMRC’s statutory powers allow them to use “best judgement” because of insufficient records, taxpayers do not have an equivalent entitlement to rely on their own best-judgement calculations in place of supporting records.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted sympathy for the appellant’s personal circumstances but observed ongoing business activity meant he was not prevented from keeping records. It also commented that cancellation of a penalty does not relieve the obligation to keep records nor provide evidence to substantiate retrospective reduced-rate claims.