Our Experience Speaks For Itself

VAT specialist case studies – our experience speaks for itself

Client received a VAT repayment in excess of £430,000

The business in this case is mostly in the insurance sector with many services provided being correctly treated as VAT exempt.  Being partially exempt meant that every VAT return needed to be recalculated following which voluntary disclosures to HMRC were made for a VAT repayment.

The potential issue of “unjust enrichment” was pro-actively considered and HMRC accepted that our client would not be unjustly enriched.

After a significant amount of correspondence HMRC made the VAT repayment of the voluntary disclosure, in full, to our client.

£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 VAT 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 VAT assessments were originally made totalling over £250,000 plus interest being based on an allegation of dishonest evasion.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With our VAT specialist advice the dishonest evasion allegation was withdrawn and the VAT assessments reduced by over 80%.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 our 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. After discussions with our VAT specialist the matter was settled at ADR for an amount of tax of less than £70,000 with no penalties nor interest being charged.

VAT Personal Liability Notice of about £220,000 withdrawn.

Our client received a personal liability notice (PLN) relating to to a VAT penalty of about £220,00. The client  had been the sole Director of a company where. HMRC had alleged that the company was involved with “fraudulent activity”.  HMRC sought to argue that the company Director had “personally gained, or attempted to gain,” from the alleged VAT fraud.  

At our request HMRC undertook a review of the case and the PLN as withdrawn with the result being that the Director was not required to pay the VAT penalty.

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 VAT 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.

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 after 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 Value Added Tax assessments were eventually reduced to an agreed amount resulting in a saving to our client of about 70%.

Contact

Speak to a VAT specilist on 0161 883 2120.