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»Ê¹ÚÌåÓýapp following are examples of how officers have used mark up to calculate arrears.

Example 1

In the absence of records and precise information from the business, the officer carried out a mark-up exercise based on his knowledge and expertise about the trade generally.

»Ê¹ÚÌåÓýapp tribunal upheld the assessment, case Playden Oasts Hotel - LON/90/1648.

Example 2

»Ê¹ÚÌåÓýapp main basis for the assessment was a mark-up exercise from information of purchases obtained from suppliers. As the business had very few records sales prices were agreed with the appellant.

»Ê¹ÚÌåÓýapp assessment was upheld, case K. Sedat t/a Sherrys Kebab and Burger Bar - Lon/90/1780.

Example 3

An assessment was raised on a food to drinks ration and a weighted mark-up calculated on the basis of a 6 week period said to be representative by the appellant.

As there were no menus for the period and a shortage of records, assumptions were made. »Ê¹ÚÌåÓýapp appellant was advised of the conclusions drawn from the exercise and invited to comment, which he failed to do.

»Ê¹ÚÌåÓýapp tribunal upheld the assessment, case MH Rahman t/a Khayam Restaurant - MAN/96/133.

Example 4

A weighted mark-up for the period chosen was applied linearly to previous periods back to the mark-up accepted by previous officers.

At that time, the mark-up was lower than that of the representative period. »Ê¹ÚÌåÓýapp tribunal accepted that the assessment was issued to best judgement and that the linear mark-up is an acceptable basis for an assessment

Based on this decision it should be possible, provided there is an agreement between the business and the officer relating to a period’s mark-up, to undertake a single period weighted mark-up and apply a linear relationship, case Terence Neil Wilshaw - MAN/96/277.