'We were persecuted and made to fear we would lose everything': The tiny cafe the taxman said owed £500,000 | Mail Online
Grandmother of 11 Icilda Newell ran her tiny Caribbean cafe in North London for love. There was just enough room for a small counter, a cooking area and a few tables and chairs.
But she had a stream of regulars who came for the spicy patties (pasties), curried goat and saltfish fritters, and fondly nicknamed her ‘mum’.
Most would typically pay around £4, though many spent as little as 50p. For Mrs Newell, 70, it was never about the money - by opening her cafe, she was fulfilling a lifelong ambition.
That was until the day all small business owners dread - the taxman came calling and made a devastating accusation.
He implied she had pocketed the profits from more than 13,000 customers a year for 16 years and then failed to declare them to the Revenue. In total, HMRC said she owed more than £500,000 in unpaid taxes and fines.
But she had a stream of regulars who came for the spicy patties (pasties), curried goat and saltfish fritters, and fondly nicknamed her ‘mum’.
Most would typically pay around £4, though many spent as little as 50p. For Mrs Newell, 70, it was never about the money - by opening her cafe, she was fulfilling a lifelong ambition.
That was until the day all small business owners dread - the taxman came calling and made a devastating accusation.
He implied she had pocketed the profits from more than 13,000 customers a year for 16 years and then failed to declare them to the Revenue. In total, HMRC said she owed more than £500,000 in unpaid taxes and fines.
In November, they were finally awarded a tribunal before a judge.On the first day, having shown no previous signs of yielding, HMRC suddenly dropped its demand for the first ten years of tax.
On the second day, the judge found in their favour. The relieved Newells burst into tears. In his ruling, Judge Roger Berner said HMRC was wrong to demand the extra tax. He described Mrs Newell as ‘transparently honest’ and her submissions as ‘compelling’.
On the second day, the judge found in their favour. The relieved Newells burst into tears. In his ruling, Judge Roger Berner said HMRC was wrong to demand the extra tax. He described Mrs Newell as ‘transparently honest’ and her submissions as ‘compelling’.
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