Kog v Revenue and Customs (VAT - option to tax - whether made - company failure to account for output tax on rent and proceeds of sale - company penalty due to deliberate inaccuracy by the appellant - PLN issued to appellant - direct knowledge of option - blind eye knowledge) [2026] UKFTT 40 (TC) (08 January 2026)

Kog v Revenue and Customs (VAT - option to tax - whether made - company failure to account for output tax on rent and proceeds of sale - company penalty due to deliberate inaccuracy by the appellant - PLN issued to appellant - direct knowledge of option - blind eye knowledge) [2026] UKFTT 40 (TC) (08 January 2026)

The appellant had blind eye knowledge of the option to tax at the time of filing the VAT return, having deliberately failed to clarify the position with HMRC despite strong indications and professional advice that the property was opted. This constituted a deliberate inaccuracy, justifying the personal liability notice.

Citation
[2026] UKFTT 40 (TC)
Parties
Appellant: Akin Kog; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 January 2026
Procedural Posture
VAT Personal Liability Notice Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
VAT, Option to Tax, Personal Liability Notice, Deliberate Inaccuracy, Blind Eye Knowledge
Tax Law VAT Option to Tax Personal Liability Notice Deliberate Inaccuracy Blind Eye Knowledge

Case Brief

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Parties

Akin Kog

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Personal Liability Notice Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the appellant is personally liable for a penalty due to deliberate inaccuracy in the company's VAT return relating to the sale of an opted property.

Ratio Decidendi

The appellant had blind eye knowledge of the option to tax at the time of filing the VAT return, having deliberately failed to clarify the position with HMRC despite strong indications and professional advice that the property was opted. This constituted a deliberate inaccuracy, justifying the personal liability notice.

Court Disposition

Appeal dismissed

Orders

  • Personal liability notice in the amount of £38,749.73 upheld against the appellant.