PAYE Troubles
A courier firm became a victim to a PAYE review. HMRC alleged significant tax to pay in respect of telephones and errors on the director's loan account. After admitting they were wrong HMRC moved on to car and fuel benefits. They simply would not accept there was nothing wrong and they tried to collect tax of over £1,700 as a result of a £20 error. It took over 20 letters, 21 months of stress and hassle and fees of £3,200 to convince HMRC that there was no tax to pay.
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VAT Blues
Customs alleged a business had claimed VAT expenses twice and had also claimed non business items. With VAT specialist help the accusation was refuted and it was shown that the VAT Officer's methods were incorrect under European law. An assessment of nearly £10,000 was reduced to nil. Fees of £4,500 were paid.
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Aspect Enquiry
An enquiry into the accounts of a care home looked at its expenses and tried to disallow many of them. Items as low as £30 were challenged claiming they were capital items and not allowable for tax. With the backing of Fee Protection no additional tax was paid. The enquiry lasted over a year and accountancy fees of £3,000 were paid.
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Car Problems
A company received a routine PAYE compliance visit from HMRC. The Inspector attempted to argue that a car benefit should have been assessed on the Managing Director and wanted further tax of £17,000. Over two years later the case eventually went before the Revenue Commissioners. The case was won and over £6,000 of accountancy fees were paid. The client told Fee Protection "I would have ended up paying the tax without you".
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Full Enquiry Horror
A limited company operating a hotel / restaurant was selected for a full enquiry. The Inspector simply refused to believe many of the explanations given to him. The enquiry lasted for 32 months and became quite acrimonious. Eventually a barristers opinion was sought and the Inspector eventually shut the case down WITH NO ADJUSTMENTS. Accountancy fees of over £12,000 were paid under the policy.
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Property Issues
A property lettings business was selected for enquiry but it became clear the Inspector did not realise what he was taking on. The business included literally hundreds of properties - each with its own lettings agreement. The opening letter requested substantial information - and cost over £10,000 in accountancy fees to answer. HMRC then reviewed the information for over 12 months before shutting the case down for no adjustments.
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