VAT COMPLIANCE REVIEWS

HM Revenue & Customs Investigations

The former HM Customs & Excise, now part of HM Revenue & Customs, has in its arsenal some of the most powerful legislation available to a Government department, and we see these powers being used on a regular basis.  It is therefore essential for any client to have the best available professional advice.  We have the experience and expertise to advise and assist taxpayers on any investigationor dispute with HM Revenue & Customs involving VAT.

Whether you are a taxpayer facing a problem with HM Revenue & Customs, a business seeking assurance on due diligence procedures to minimise the risks of a VAT liability, we can assist you.

A civil evasion investigation by HM Revenue & Customs

The recent merger between HM Customs & Excise and the Inland Revenue will in the near future result in joint tax investigations involving suspected serious tax fraud being carried out by the new revenue department, H M Revenue & Customs.

Previously each department operated under its own procedures for dealing with cases of tax evasion, where the emphasis was on seeking cooperation from the taxpayer by the making of a disclosure of the tax evaded.  This approach will continue in the new department.

A civil penalty will usually be imposed on the business and possibly also to the individual(s) responsible for the evasion, for example, one or more partners or directors in the business.  The penalty will be based upon the level of cooperation provided by the taxpayer, once the quantum of the tax arrears had been agreed. 

Customs will continue to investigate any business where they suspect evasion of substantial amounts of VAT has occurred, whether by the under recording or declaration of the business income, or false claims for input tax repayments.  In some cases, a parallel investigation into direct tax matters will take place where it is suspected evasion of other taxes has occurred, for example, PAYE or Corporation Tax.

The involvement of a professional adviser in dealing with tax investigations is essential when the occasion arises, and we have the experience and expertise to act on behalf of taxpayers by attending meetings with HM Revenue & Customs, preparing a disclosure report and negotiating a settlement of the tax arrears.

We offer a free initial consultation to new clients to review their circumstances and requirements.