In Harry Edebiri (t/a TT Trading) v HMRC [2020] TC07988, the First Tier Tribunal (FTT) set aside VAT assessments totalling £16,600 as HMRC had failed to exercise their discretion to allow alternative evidence to support input VAT claims.

Mr Edebiri Appealed to the FTT.

HMRC has discretion under Regulation 29 of the VAT Regulations to allow a claim for input tax where the person holds “such other evidence of the charge to VAT as the Commissioners may direct”.

The FTT allowed Mr Edebiri’s appeal in part, finding that:

The FTT set aside all assessments other than those in the period July 2016 to April 2017, reducing the amount assessed from £20,021 to £3,408.


HMRC can now make new assessments on Mr Edebiri where they are in time. The FTT asked that HMRC take a number of mitigating factors into account when deciding whether or not to issue new assessments.

Useful guides on this topic

Statutory Review (by HMRC)
What is a Statutory Review? Is it automatic? What happens in a Statutory Review? Can you challenge a Statutory Review's findings? Can you influence a Statutory Review?

Is voluntary VAT registration worthwhile?
When can a business voluntarily register for VAT? When would it be beneficial to voluntarily register?

Registering for VAT
A guide to explain when to register for and charge VAT? VAT registration limits and VAT rules after Brexit. What penalties might HMRC issue for late notification of registration?

How to appeal an HMRC decision
What type of decision can you appeal? What are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External link

Harry Edebiri (t/a TT Trading) v HMRC [2020] TC07988

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