Shahid Hussain v The Commissioners for HMRC

Facts

Mr Shahid Hussain appealed against HMRC's decision to register him for VAT with effect from 1 October 2017, and against the consequent assessments and penalties. HMRC's case was that he owned and ran a takeaway called "Your Spiced" at 110 High Street, Dumbarton between 6 April 2013 and 31 August 2017, with turnover of some £382,032 over that period. HMRC officers gave notice of an inspection in July 2016 and visited the premises on 19 August 2016, where an environmental certificate and a worker behind the counter identified Mr Hussain as the owner; he declined the inspection. Repeated requests for VAT registration details and business records went unanswered, and penalties for non-compliance followed. On a further visit on 24 August 2017 Mr Hussain said he was the owner but that the takeaway was run by Muta Foods and that he was employed as manager; he refused inspection of the till and delivery terminals. HMRC then registered him for VAT and assessed £32,579 in tax under section 73(1) of the Value Added Tax Act 1994 and £22,805 in penalties. Mr Hussain's case was that from 1 February 2015 the business belonged to YSD Trading Limited, later transferred to Muta Foods Limited, and that turnover never exceeded the registration threshold. He appealed under section 83(1)(a) of the Value Added Tax Act 1994.