Our Experience Speaks For Itself

VAT specialist case studies

£65,000 repayment received by client

After various discussions with our client, based in Scotland, we concluded that VAT was being accounted for on income that should properly have been treated as exempt from VAT.

We submitted a voluntary disclosure to HMRC on behalf of our client. After a detailed face to face review by HMRC, at which one of our consultants assisted our client, the repayment was made by HMRC.

Assessment reduced by over 80%.  No penalty.

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 VAT assessments were originally made totalling over £250,000 plus interest being based on an allegation of dishonest evasion.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.

With our VAT specialist assistance the dishonest evasion allegation was withdrawn and the VAT assessments reduced by over 80%.

Assessment, penalties and interest totalling about £270,000 reduced to less than £70,000 following VAT ADR

After undertaking various enquiries HMRC concluded that a business was late in registering for VAT. The business records were said to be inadequate by HMRC giving rise to an estimated assessment. The business contacted one of our VAT Consultants who made various submissions to HMRC seeking to have the decision revised. The VAT Review Officer maintained the position of the Assessing Officer.

A VAT specialist from firm lodged an appeal with the Tax Tribunal on behalf of the business and submitted a request to HMRC to seek to resolve this matter by way of Alternative Dispute Resolution (ADR). HMRC agreed to ADR which allowed us the opportunity to gather further information from HMRC. The matter was settled at ADR for an amount of tax of less than £70,000 with no penalties nor interest being charged.

Assessments on a business totalling over £130,000 withdrawn by HMRC

HMRC had undertaken an exercise at a business which suggested that sales were being suppressed by about 35%. A series of VAT assessments were raised by HMRC totalling over £130,000 which also indicated that penalties would be raised. The businesses firm of Accountants referred the matter to us for our VAT specialists to consider.

A great deal of information was gathered from the business in question, from the referring firm of Accountants and from HMRC. Once all of the information had been considered it transpired that the assessments were invalid and hence were withdrawn by HMRC.

Assessments on a client totalling over £160,000 withdrawn by HMRC

HMRC disputed the VAT treatment that a client had included in various VAT returns in relation to “retrospective discounts” and raised a number of VAT assessments totalling in excess of £160,000 plus interest and the threat of penalties.

Some of the “retrospective discounts” were passed on to associated companies of the initial recipient which HMRC initially contended should be ignored in relation to VAT. Overall we contended that the issue should result in a nil net sum.

Appeals were lodged with the Tribunal and after almost an 18 month period of negotiations HMRC eventually agreed with our position resulting in no overall cost of VAT, no interest charged by HMRC and no penalties.

Default Surcharge of over £20,000 withdrawn

Our client had received a Default Surcharge based on a VAT having been submitted a few days late. The client had requested HMRC to review the penalty which was upheld by HMRC at the VAT review stage.

A VAT specialist from our firm lodged an appeal to the Tribunal setting out detailed grounds as to why our client had a “reasonable excuse”. After reviewing our grounds of appeal HMRC withdrew the surcharge.

Default Surcharge of over £48,000 reduced to £10,000

Our client had received a number of penalties as a result of late payments in respect of VAT returns. The most recent payment amounted to over £20,000 which our client requested that we consider. On further investigation we thought that all penalties were worthy of further consideration as our client had paid in excess of £25,000 in respect of these earlier VAT returns.

Our VAT consultants were able to successfully argue that our client had a “reasonable excuse” in relation to a number of the VAT periods under consideration. Some penalties were withdrawn and others reduced. Th overall amount of penalties due from our client were reduced from over £48,000 to about £10,000. As our client had already made payment of the earlier penalties a welcome repayment was made to our client by HMRC.

Liability dispute amount to over £100,000 settled in clients favour after ADR

HMRC had assessed our client for in excess of £100,000. The VAT liability of the goods supplied was seen to be standard rated by HMRC. Various submissions were made by a VAT specialist to HMRC disputing this position. It seemed to us that HMRC had become somewhat entrenched in the position taken.

At ADR, where one of our VAT consultants assisted our client, the facilitator was able to allow the parties to have a full and frank discussion about the facts. HMRC were eventually convinced that the amount of VAT due on the goods in question could be accounted for based on a “margin” scheme.

Assessments reduced by about 70% following ADR

HMRC undertook two days of 2 hour “invigilations” at lunchtime at a catering outlet. Most sales are takeaway sales. HMRC disputed the level of zero rated sales and assessments were raised in excess of £85,000.

A VAT specialist made various representations to HMRC and attended negotiations with our client at ADR. The assessments were eventually reduced to an agreed amount resulting in a saving to our client of about 70%.

Assessment reduced by over 80%. No penalty.

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.

With our VAT specialist assistance the dishonest evasion allegation was withdrawn and the VAT assessments reduced by over 80%.