VAT assessment review. Reduced of over 80%. No penalty.
VAT assessment review
Our client, a partnership, operated a restaurant in Cornwall. VAT assessments were originally made totalling over £250,000 plus interest being based on an allegation of dishonest evasion. Dishonest evasion carries a penalty of up to 100% of the tax evaded.
A business has 30 days to request a VAT assessment review of an HMRC decision, or alternatively it can appoint an advisor such as Solve VAT to do so on its behalf. This is different to making a formal VAT appeal to the Tax Tribunal.
It is also possible to gain a VAT assessment review outside of the 30-day period if additional information can be provided. HMRC will then have 45 days to review the decision unless they require additional time; although not made clear in the official guidance, if a business refuses HMRC this additional time to carry out a review, their original decision will simply be upheld.
Additionally, it is sometimes possible to secure a VAT assessment review beyond the 30-day time limit, but only with the agreement of the Tax Tribunal. As such, it is always best to launch an appeal before this deadline.
Conclusion
A VAT assessment review was undertaken by one of our VAT experts and a number of assumptions made by HMRC were found to be incorrect. An appeal was lodged with the Tax Tribunal. With our VAT specialist assistance the dishonest evasion allegation was withdrawn thus removing the prospect of a VAT evasion penalty and the VAT assessments were reduced by over 80%.
HMRC
Meet The Team
PeterSmallwood
Peter has assisted a variety of clients including overseas businesses, large multi-national businesses, family businesses, partnerships and sole proprietors. Peter has represented clients at VAT ADR meetings and at the First-Tier Tax Tribunal. Initial negotiations with HMRC can be crucial and as a VAT specialist Peter has been able to make representations to HMRC that have resulted in a number of clients to successfully resolve matters without the need of further action. Peter has been instructed by a number of firms of Solicitor’s to provide expert witness reports in relation to VAT matters.
Experience
Peter has over 25 years’ experience as a leading VAT specialist working as a VAT accountant in the accountancy profession including being a VAT Director at Deloittes. Prior to working as a VAT accountant within the profession he worked as a Senior VAT Officer at what is now HM Revenue & Customs (HMRC). Indeed he remembers the days prior to HMRC when he worked at HM Customs & Excise (HMC&E) and before specialising in VAT his work experience included Excise Duty and Customs Duty matters.
RachelDavies
Rachel Davies began her working life in the legal profession. When appropriate Rachel will instruct Counsel on behalf of clients for some of the more complex appeals on which we are instructed. Some appeals where Counsel has been instructed by Rachel have resulted in HMRC conceding the matter only a matter of days before a hearing was due to take place.
She moved on from the legal profession and over 25 years ago began working with the VAT group at Deloitte. Rachel was instrumental in setting up Solve VAT in 2002 and almost the first matter she worked on was what ultimately turned out to be a successful appeal on behalf of a client to the High Court from what was then the VAT and Duties Tribunal.