In FW Services Ltd v HMRC [2020] TC 07636, the First Tier Tribunal (FTT) concluded the ‘best judgment’ assessment made by HMRC was excessive in the absence of supporting evidence.  

On 6 June 2018 HMRC issued assessments to FW Services for under-declared fuel sales.

In making the decision the FTT found a number of errors in the HMRC officer’s assessment. These included:

In the absence of any evidence that FW Services’ receipts were understated, the FTT concluded the assessment was excessive and it was reduced to zero.

Links

Assessments: Best judgement
What is a 'best judgement' assessment for VAT? When can HMRC raise one? What are your rights of appeal? How do you displace a best judgement assessment?

Best judgement assessment: scaffolders' VAT penalties reduced by £387,000
In M Hodges v HMRC [2015] a taxpayer successfully reduced VAT penalties of £394,694 to £7,807. He was found guilty of dishonesty however HMRC had failed to exercise 'best judgement' in assessing the VAT penalties as required by the law.

External links

FW Services Ltd v HMRC [2020] TC 07636