A great result for our clientPosted 2017 by Chris Davies
I am delighted to report that our tax team, under the guidance of our tax director Phil Kinzett-Evans we have recently produced a great result for our client, saving him many £000’s.
The taxpayer client was previously represented by an unqualified individual who held himself out locally to be an “accountant” [emphasis added]. Things ticked along nicely for several years, with very little, if no, involvement from the taxpayer who trusted the “accountant” implicitly. The taxpayer allowed full access to books and records, accounts and returns were prepared and filed. The taxpayer noticed an increased level of correspondence from HMRC but the ‘accountant’ repeatedly assured him that there were no problems and it was all being dealt with
In due course HMRC opened an enquiry into the taxpayer’s affairs and the taxpayer approached us for some third party independent advice.
We were shocked by what we found. Not only had the “accountant” given HMRC authority to make any tax repayments to his own bank account but he had also been entering large fictitious expenses, with presumably the intent of maximising the substantial tax repayment that was due, to his own bank account. Fortunately, we were able to intervene and stop any such repayments being made.
As a result of the fictitious expenses the tax return that had been filed was incorrect and in such cases HMRC will typically seek a penalty of 30% of the tax understated as a deterrent. I am delighted to report that we were able to negotiate a nil penalty which is a very rare result and more than we could have hoped for.
Overall because of our quick actions the client has not suffered any loss.
As for the “accountant” as far as we know he has skipped the country and is unlikely to be seen in these parts again.
Again, another example of why you should always use a reputable firm of Chartered Accountants.