Wai Ho Takeaway (partners An Chen and Lin Chen) v Commissioners for Her Majesty's Revenue and Customs

Facts

An Chen and Lin Chen, trading in partnership as Wai Ho Takeaway from premises in Front Street, Klondyke, Cramlington, applied to register the partnership for VAT by a form VAT1 submitted on their behalf by Liu & Company, accountants, and received by HMRC on 20 May 2010. The form stated that the partnership had taken over the business as a going concern on 22 November 2009 from a previous owner named "Chen", but omitted an estimate of taxable supplies; a VAT officer telephoned the business on 28 May 2010 and was given a turnover figure of £78,000. HMRC registered the partnership with effect from 22 November 2009 and, by letter of 1 July 2010, warned of a penalty for late notification. The partnership then submitted a nil VAT return for the period to 30 June 2010, and on 2 September 2010 HMRC imposed a penalty of £207 under section 67 of the Value Added Tax Act 1994. An application to deregister dated 22 September 2010 followed, stating only "We have never traded from 22/11/09". The partnership appealed direct to the Tribunal by Notice of Appeal dated 5 October 2010, contending they had never traded. Only on 31 January 2011 did their representative produce a licence agreement dated 22 November 2009 said to show that the business had been run by Best Catering (10) Limited.