In Golden Cube Limited v HMRC [2018] TC06666, HMRC's observations of sales made by a Subway franchise over a three day period failed to provide sufficient evidence to raise an assessment for undeclared takings: HMRC had ignored the evening and weekend trading.

HMRC accepted that there are three possible reasons for the differences in the proportion of standard rated sales for the invigilation period against the VAT returns submitted:

The FTT concluded that the most likely explanation based on the evidence provided was that the three days of observation were unrepresentative of the VAT periods to which they were compared. The assessment was excessive and the taxpayer’s appeal was allowed.

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Food: catering and takeaway

External link Golden Cube Limited v HMRC [2018] TC06666