Read on for the gory details of this case.
During August 2020 Zubair Hussain (“Mr Hussain”) made five separate claims through the Eat Out to Help Out scheme (“EOTHO”) totalling £68,521 in the name of Berries Bagels & Shakes 2 Ltd (“BBS2”) which were overstated and not supported by the required business records, nor by bank records.
In that:
- The EOTHO scheme was open to businesses who registered their establishment for the scheme and offered discounts of 50% on food and non-alcoholic drinks to diners on Mondays to Wednesdays between 03 August 2020 and 31 August 2020.
- The businesses could claim back the discount given on food and non-alcoholic drinks up to a maximum of £10 per diner during the qualifying 13 day period.
- Five separate claims were submitted to HMRC on behalf of BBS2 as follows
- Week 1 for period 3 to 5 August 2020 totalling £13,456
- Week 2 for period 10 to 12 August 2020 totalling £16,990
- Week 3 for period 17 to 29 August 2020 totalling £17,488
- Week 4 for period 24 to 26 August 2020 totalling £15,696
- Week 5 for period 31 August 2020 totalling £4,891
- HMRC subsequently conducted a review and assessment of the EOTHO claims, commencing 13 January 2021.
- Following exchanges with Mr Hussain, a notice of assessment for £68,521 was issued on 06 January 2022 with the review finding that the company was not entitled to the amount of EOTHO monies paid.
- HMRC have confirmed that BBS2 has failed to provide evidence to HMRC to support the EOTHO claims.
- A review of the company’s one known bank account shows for the full August 2020 period, receipts (exclusive of EOTHO monies) totalled £23,101, therefore the maximum EOTHO claim BBS2 was entitled to make was £11,550.
- BBS2 claimed at least £56,971 more than it was entitled to under the EOTHO scheme.
