In Carmel Jordan v HMRC [2014] TC4010 the FTT turned down an appeal against an information notice issued by HMRC during a Business Records Check (BRC) however it held it unreasonable to request information beyond the statutory records of the business.

HMRC issued a schedule 36 FA 2008 information notice in respect of a business records check on a taxi driver. The taxpayer appealed against the notice on the basis that she had given information on the phone and the information was not reasonably required.

The tribunal confirmed that schedule 36 allows HMRC to check a person’s future liability in checking business records however the notice should be confined only to the taxpayers statutory records. It held that it is unreasonable to demand other documents and information or make duplicated requests, which included:

  • Do you rent the vehicle or just pay rent for the radio?
  • Do you receive a receipts for rents paid?
  • How are takings recorded?
  • How are your purchases recorded?

In addition the FTT found that the question “what do you do with monies at the end of the working day?” is unreasonable. "The relevant issue is what the takings are not what Ms Jordan does with them."

Carmel Jordan v HMRC [2014] TC4010