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In Kevin Fearon v HMRC [2018] TC6818 the FTT found rejected an appeal against four years of tax assessments and penalties for incorrectly claimed subsistence expenses. The errors were deliberate and 56% penalties applied.

The taxpayer appealed. He claimed that his accounts were wrong and had been corrected by his accountant and that his personal tax returns should have been corrected.

The First Tier Tribunal noted that:

It confirmed that the assessments are valid.

Comment

HMRC could presumably have also fined the company for failure to report benefits

Useful guides on these topics

Subsistence
The tax term for food and drink: special rules apply for PSCs.

Personal Service Companies (PSCs)
Tax issues for your typical single director/shareholder company.

Discovery Assessments
When and how can HMRC raise a discovery assessment: what conditions must be met? 

Penalties for error and mistake
A tax-geared penalty will apply in one of three circumstances that result in a potential loss of tax

How to appeal an HMRC decision
A note summarising the key steps in appealing a decision of HMRC

How to appeal a tax penalty
Top tips on the process for appealing a tax penalty

 External links

Kevin Fearon v HMRC [2018] TC6818