Glen Whittle must be feeling pleased with the outcome of his recent appeal against assessments issued by HMRC.
An enquiry instigated by HMRC resulted in the issue of assessments on the basis that the income of Mr & Mrs Whittle was insufficient to meet their outgoings. HMRCs argument centred on the level of household and holiday costs.
Fortunately, Mr & Mrs Whittle were able to prove that their actual expenditures, rather than those estimated by HMRC, were much lower. For example they were able to demonstrate that:
- Only one of two daughters was at school, the other worked and had made a contribution to the household budget.
- Mrs Whittle was employed by a travel agent and had secured unusual terms and conditions. She was absent from home for lengthy periods and received an allowance and discounted flights.
- The family home was eco-friendly with consequent savings in running costs.
- HMRC had also failed to adjust their figures to account for Mrs Whittle’s significant absences.
The tribunal accepted the accounts of personal income and expenditure presented by the Whittle family and their appeal was allowed.
Readers who are thrifty, or whose personal circumstances mean that their outgoing are below the norm, should keep records to justify their position. In Glen Whittle’s case this has paid dividends.