Honest labourer beats sceptical taxman

Mr Dauti was from Bosnia and worked in the UK as a subcontract labourer. At his appeal to the Tax  Tribunal he explained that many of his friends were working in the UK illegally and therefore needed to keep off the grid.   He lent them money and they paid him back.  HMRC claimed these receipts were undisclosed earnings.   Mr Dauti convinced the Tribunal they were not.   The Tax  Tribunal found his evidence sincere and truthful, and therefore that the taxman was wrong not to believe him, and they decided the assessments should be discharged.

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