Case Studies
The clients I have acted for are as diverse as there are businesses. I have acted for a wealthy investment banker and for market traders; a fashion retailer; farmers; a racehorse trainer; a dog breeder and trainer; garden nurseries; dentists; veterinary practices; physiotherapists; printers; architects; builders and carpenters; hairdressers; public houses; restaurants and fast food outlets; etc. In fact, just about any kind of business with a real or perceived problem with HMRC. It may be just a simple matter of leading the client through the enquiry which comes to a speedy conclusion with no or minor adjustments, or the whole reliability of the business accounts and tax returns might come under scrutiny with possible serious consequences for the client. Technical issues can also have severe repercussions as in the case of the factory owner who was initially denied a tax deduction for a new roof costing over £1 million.
Here is a small selection of recent cases:
The butcher - the client ran a high class butcher’s shop in London. From the outset of the enquiry he admitted there was a problem but this did not stop the enquiry running for over three years before I became involved. There was no doubt that the previous adviser had the client’s best interests at heart but the stance being taken was not helping matters. The amounts proposed by HMRC would have put the client out of business but he also knew that HMRC was never going to go away with nothing. All the client wanted to do was to reach a fair agreement with HMRC and get on with his life. I was able to negotiate a settlement that the client agreed was sensible and affordable – and could have been reached two years earlier!
The restaurateur - another long drawn out enquiry that had been running for years before I became involved. The client ran a fish restaurant in the West Country. HMRC had unsuccessfully challenged just about every aspect of the business, the record keeping, the compilation of the accounts and the client’s lifestyle before reverting back to the gross profit rates. This was a case where it was necessary to stand one’s ground (and go to the Commissioners of Taxes if necessary) before HMRC accepted that there was no case to answer.
The fishing tackle shop – all attempts at reaching a negotiated settlement with HMRC had failed and there was no alternative but to bring the case before the General Commissioners of Taxes. With so much at stake the decision was not taken lightly. The Commissioners listened patiently to our submission and agreed with just about everything we said. The final bill for tax, interest and penalties was a fraction of what HMRC had wanted.
The cattle trader – Following the success of HMRC in obtaining information from certain banks, it came to light that the client had traded through a bank account in the Republic of Ireland. Over the years large sums of money had passed through this account but it had never been disclosed to the accountant who prepared the financial accounts and tax returns. I was able to show that the bank account had been used as a foreign exchange account and that most of the money did eventually end up in the Northern Ireland business bank account and had been taxed. Effectively, the worst that had happened was that tax had been paid later than it should have been and HMRC was due some interest on the late paid tax.
