In Carol Holmes & Andrew Knight  v HMRC [2018] TC6824 the FTT allowed HMRC to access taxpayers' private bank statements. There was evidence that declared business income did not support private cash outgoings.

The FTT found that:

The FTT decided that given the evidence of a disparity between the appellants’ declared income and their personal expenditure, HMRC had a legitimate reason to make further enquiries and the notices were upheld.

Comment

HMRC had show that it had a genuine reason for requesting private records, and it was able to persuade the FTT that it had one.

Useful links 

Schedule 36 Information Notices (subscriber guide)

How to appeal a decision of HMRC
When and how and what you can appeal.

External links

Carol Holmes & Andrew Knight  v HMRC [2018] TC6824