The FTT has found that there was deliberate inaccuracy, attributable to the director, in Khan v HMRC [2026] UKFTT 1205 (TC).
VALUE ADDED TAX – suspected missing trader fraud – penalty issued to company under Schedule 24 to Finance Act 2007 – personal liability notice issued to sole director – whether VAT returns filed by company for relevant periods contained inaccuracy – yes – whether inaccuracy in returns deliberate – yes – whether attributable to director – yes – whether company’s details hijacked by another person – no
The appellant in this case failed to establish that the Best Buy company, of which she was sole director, had been hijacked by someone who engaged in metal trading in Best Buy’s name.
There was no credible reason for Best Buy to have been incorporated, to have registered for VAT or to have remained registered for VAT.
The company’s financial statements were not credible and the appellant had demonstrated that she was capable of dishonest behaviour.
As such, the FTT:
“concluded that the Appellant has not established, on the balance of probabilities, that Best Buy was hijacked by an unknown person (or persons) who engaged in metal trading in Best Buy’s name”.
Therefore:
“HMRC were entitled to issue a PLN to the Appellant for the deliberate inaccuracies in Best Buy’s final three VAT returns.”
The taxpayer’s appeal was dismissed.
https://caselaw.nationalarchives.gov.uk/ukftt/tc/2026/1205
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