Disclosure

We were approached by an individual who had been working for himself for over 10 years and who had never declared his income to HMRC. He had not got round to registering for tax when he first set up in business and after a couple of years where he had not had time to register he became afraid that he was going to be prosecuted by the Inland Revenue. He then spent the next 8 years dreading the brown envelopes dropping on his letter box. Gilbert Tax were successful in bringing the whole matter to a conclusion for him within 6 months with a tax bill significantly less then the client was expecting. In addition as the tax evasion had been disclosed voluntarily to HMCR the level of penalty charges was the lowest possible in the circumstances saving our client a significant sum in penalty reduction.

Discovery

We became involved in the last stage of a company inland revenue tax investigation when an accountant called us in as he could not make any progress with the tax enquiry. HMRC were claiming that over £60,000 of tax, interest and penalties were due and also that they had clear evidence of an incorrect certificate of full disclosure being signed ( a very serious charge). HMRC were adamant that this was the minimum amount due and stated that they were willing to raise tax assessments as well as interest and penalty determinations and take the matter to tribunal. We successfully demonstrated that HMRC should have discovered some of these matters in a previous tax enquiry and were successful in arguing that HMRC could not reopen some earlier years (as well as reducing the amounts due for years where assessments could be raised). The eventual figure which was agreed as payable was just over £14,000 including interest and penalties.

Code of Practice 9 (Now Civil Investigation of Fraud)

We were approached by a client who had been running two sets of books and where money and investments had been made overseas. HMRC believed that the tax at stake was in the region on £500,000 excluding interest and penalties. We approached Special Civil Investigations and persuaded them to operate the case under Code of Practice 9. We completed the report in the agreed timescale and reduced the overall settlement including interest and penalties to £325,000.

Employment Status

We were contacted by a Scaffolding Contractor after HMRC had issued assessment claiming tax and NIC’s totalling over £70,000 excluding interest and penalties in relation to two subcontractors the Inland Revenue had ruled to be employees. We reviewed all of the facts and interviewed the Subcontractors and the Directors of the Company (something the HMRC had not done). Despite the late stage at which we became involved we were successful in demonstrating that the individuals were genuinely self employed reducing the demand to nil.

Long Running Dispute

After a 4 year Inland Revenue investigation where no progress had been made HMRC had concerns that a Tax Fraud had occurred with sales of approximately £30,000 omitted from one year of a businesses accounts, HMRC were looking for adjustments for this year and previous years. We were appointed to bring this enquiry to a solution and 3 months after been appointed we brought the enquiry to a close with agreed additional tax of nil.

Tax Debt

An individual approached us who owed HMRC over £9000 and who had already failed to keep to a time to pay arrangement with HMRC. We identified further expenditure which had not been claimed and reduced the debt by £3,400. HMRC were in the process of taking County Court action and we persuaded them to agree an instalment arrangement with the client. Payments were spread over a 2 year period.

Residence Status

We were approached by a client who lived in Switzerland with a home in Spain and with his family based in the UK. HMRC were adamant that he was a UK resident and thus that tax should be paid in the UK on all of his worldwide income. We reviewed the facts and after a very long and detailed technical argument persuaded HMRC that he was not actually UK resident.

Property Magnate

We were approached by an individual who had been selected for enquiry by the HMRC Hidden Economy Team based on information they regularly receive from Local Authorities about Housing Benefit payments. The individual had over 20 properties all of which had been funded from increase in capital growth of the other properties or the personal residence. HMRC believed that there was significant tax at risk. Using a variety of methods were were able to show how all of the properties had been purchased and how the rental business had made very little profit over an 8 year period.

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