Partial Success for Transwaste in VAT Kittel Appeal; Some Penalties and Input Tax Denials Upheld

The FTT partially upheld Transwaste Recycling and Aggregates Ltd’s appeal against input VAT denial under the Kittel principle, allowing VAT recovery where HMRC failed to prove the company knew or should have known about fraud.
Input VAT denial and penalties were upheld for transactions where the company was found to have known or should have known about fraudulent VAT evasion.
Appeals against penalties were dismissed where the company was judged to have acted deliberately and not cooperated sufficiently with HMRC.
The penalty personally charged against director Mr Hornshaw was upheld, as he was found responsible for the relevant transactions and there was no evidence implicating other directors.

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.