VAT CASES - 01.07.2024
Were directors liable to pay personal liability notice?
The case. Mr Johngir and Mr Babar were directors of two restaurants in Birmingham which traded from 2014 to 2018. The restaurants had combined covers for 250 people and employed 60-70 staff. HMRC issued a best judgement assessment in 2018 on the basis that sales had been deliberately suppressed and therefore output tax underdeclared. The company went into liquidation in July 2018. HMRC also issued a penalty for “deliberate but not concealed behaviour” in April 2019 and transferred 100% of the penalty to the two directors through a personal liability notice (PLN). ...
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VAT ASSESSMENTS - 01.07.2024
What can you do if your VAT assessment is excessive?
Your business has been issued with a “best judgement” assessment for understated output tax. You intend to challenge the figures because they are unreasonable but how should you do this?
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ENQUIRIES - 24.06.2024
HMRC targets retailers for investigation
Warning letters. HMRC is writing to businesses that use electronic tills and which it suspects aren’t declaring all their income. If you receive one of these letters do not ignore it! HMRC says it will allow 30 days from the date of issue of the letter before it will escalate the matter. In practice there will be a little leeway, but don’t bank on it. ...
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COMPLIANCE - 08.05.2024
What’s the difference between an error and an adjustment?
Your business must disclose errors to HMRC above certain limits in writing. But it can include accounting “adjustments” on the next return. What are the main adjustments (that aren’t errors) that your business could make?
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VAT CASES - 08.05.2024
Could HMRC use supplier’s server as evidence of off-record sales?
The case. New Claire Wine Ltd (W) was a wholesaler of beers, wines, spirits and other alcoholic drinks and HMRC issued a best judgement assessment for £176,656 in relation to suppressed sales made between 2012 and 2017. A penalty for “deliberate not concealed” behaviour was also issued, along with similar assessments and penalties for corporation tax. HMRC used a computer server as evidence that had been seized by the Italian tax authorities in a fraud investigation about wine imported from Italy to the UK. It contained 7m files, including information about off-record deals involving W. The taxpayer argued that the server should not be used as evidence to support HMRC’s calculations. ...
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COMPLIANCE - 28.02.2024
HMRC targets cash traders in hot food and catering
HMRC’s computer system has identified 4,000 traders in the hot food and catering sector that may be under-recording sales. What does this mean for your business and could the review be extended to other sectors?
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