Input VAT Denial Upheld: Kittel Assessment and Penalties Made Within Statutory Time Limit

The FTT held that HMRC’s assessment denying input VAT credit under the Kittel principle was made within the statutory time limit.
It was not unreasonable or perverse for HMRC to delay the assessment until sufficient evidence was gathered.
Penalties under VATA 1994, s. 69C and s. 69D were also considered, with HMRC seeking to collect from the company officer.
The FTT accepted that key evidence establishing Jeneruhl’s knowledge or awareness of fraud was only obtained within the year before the assessment.
The Appellants’ argument that the deadline was missed was rejected; the FTT found HMRC’s actions reasonable and within the law.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.