UKFTT 371 (2009) London & Essex Cleaning Services (Southern) v HMRC

Existence of partnership - HMRC won

Case Summary:

The firm had submitted accounts and computations which, because of an investigation, had never been used to settle appeals against estimated assessments for 1994/95 and 1995/96. Determination of appeals in 2009 would bring another £700K into charge- plus 15 years interest.

The four individuals had argued there was no partnership and therefore the assessments were invalid. They did not appear at the hearing and the evidence available suggested there was a partnership and that the assessments should be increased to the accounts figures- which they were.

HMRC had also raised further assessments for the two years but at the hearing HMRC said they accepted the original accounts and so these further assessments were reduced to NIL.