Gareth Carrol T/A Home Improvements Co. v Her Majesty's Revenue & Customs

Facts

The appellant, Gareth Carroll, trades as Home Improvement Co., supplying and installing conservatories from an address in Maidenhead. He was registered for VAT with effect from 1 May 2004, although he did not formally apply for registration until 10 March 2005, stating on that application that he expected to make taxable supplies of £450,000 in the next 12 months. He had previously been the sole director of three limited companies in the window and conservatory trade which had failed to meet their obligations to submit returns and pay VAT: Safeguard Home Improvements Limited, wound up on 20 May 2004 owing £30,274; Safeguard Windows Limited, wound up on 10 April 2002 owing £75,213; and Premier Home Improvements Limited, which deregistered on 20 February 2001, no debt being confirmed. His brother, Anthony Joseph Carroll, had been company secretary of the first two. After a warning letter of 20 June 2005 drew no written response, the Commissioners issued a Notice of Requirement to give security under paragraph 4(2)(a) of Schedule 11 to the VAT Act 1994 on 22 July 2005, in the sums of £14,000 for six months' estimated liability and £9,350 for four months'. The appellant sought reconsideration by fax dated 19 August 2005; that was refused on 22 August 2005, and he appealed.