03 March 2023

Norton & anr –v- HMRC

In Norton & anor v HMRC [2023] UKUT 00048 (TCC), the Upper Tribunal dismissed the appeal of a company and its director in relation to liabilities to income tax and NICs which had been assessed on the basis that two cars had been made available to the director for his private use. It also dismissed an appeal on procedural grounds in respect of one of the years at issue, holding that a letter sent to the director did not satisfy the requirements of a closure notice. It allowed the appeal for another year on the basis that HMRC could not issue a discovery assessment while the enquiry window remained open, likening the status of such an assessment to Schrodinger’s cat.

Sadiya Choudhury acted for HMRC

To view a copy of the decision please click here