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Tax Case Study

The Client's Request

With HMRC clamping down on tax avoidance and launching a series of tightly targeted campaigns to increase its tax intake from specific sectors, receiving a letter from HMRC stating that they have reason to believe you have been involved in “tax fraud” is a huge worry for both business owners and individuals, with some individuals receiving such a letter despite having never knowingly evading tax.  So, when the directors of a company within the construction sector received a letter from HMRC raising suspicion of potential tax fraud, they immediately approached us to aid in addressing these concerns.        

How we helped

Throughout the investigation, we liaised with both our client and HMRC, ensuring that we reduced the level of stress and uncertainty that comes with an investigation for the company and the individual directors.  We explored with the client any possible areas of concern that HMRC may have and discussed with them the need to ensure full disclosure in their response to HMRC. We also discussed any possible consequences if full disclosures were not made and guided them in compiling a full disclosure report to present to HMRC.  We agreed timelines and scope with HMRC, delivered a comprehensive report and sought to reach agreement and minimise potential tax liabilities and associated penalties.  
 
With our involvement, the client was able to continue with their business whilst leaving us to manage the interaction with HMRC and to complete a full and accurate report. We also ensured that HMRC operated within their powers and sought to minimise potential penalties and future focus by HMRC. The client appreciated our detailed and thorough approach recognising that this helped them to achieve a quick and effective resolution to the enquiry. HMRC stated they were very impressed with the report and resolutions suggested by us which helped significantly when agreeing the level of potential penalties.
 

The Result

Through our guidance and negotiations with HMRC, the investigation was closed with the minimum amount of disruption and penalties.  The client had minimal direct contact with HMRC ensuring they were able to continue to focus on their business. Following submission of the report, we met with HMRC and agreed the offer of settlement which was acceptable to both parties. We helped to manage the situation to reduce the stress and time commitment for the directors.

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