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Case Closures

Below are some examples of the huge degree of success we have had with both HMRC and when we have taken cases to Tribunal. Where possible we have included links to the actual decision documents.

HMRC Case Closures

Assessments originally standing at over £1m tax have gone.
After reviewing the case the new HMRC Inspector phoned me. He agreed with my analysis of the Judge's decision as set out in my recent letter. All additional assessments would be withdrawn for all years, leaving the small amount of tax arising on the mistakes plus a 40% penalty based on this small amount payable. The assessments originally standing at over £1m tax have gone. Life returns to normal for Mr Green. You can read the full detail of this case by clicking here

HMRC WITHDRAW; Conclusions based on a single "Business Economics" test defeated
This was a particularly appalling case involving a hairdresser approaching her 70's in respect of which our involvement featured in a recent Daily Mail article (you can read Martyn's comments at the end of the article). The case had dragged on with HMRC being completely intractable for some 3 years, but following our appeal at Tribunal HMRC withdrew completely from the case and the taxpayer was awarded the sum of £10,000 in compensation.

HMRC WITHDRAW; Closure of COP9 Case without adjustment
This was a COP9 case where the taxpayer had set up multiple companies (30+) in respect of the same trading activity (a furniture warehouse and salesroom) in order to minimise VAT liability. Whilst HMRC has legislation enabling it to combine trading entries, they were forced to accede that there was no illegal wrongdoing!

Recent Case Closures

HMRC give up all tax for years in dispute
This case involved a taxpayer being expected by HMRC to pay a considerable amount because a previous employer had operated the wrong PAYE code. HMRC finally accepted our arguments and gave up all the tax for for the years in dispute. You can read their final letter here.

TRIBUNAL; HMRC's arguments comprehensively defeated at Tribunal
This case had been running for several years before our involvement. HMRC alleged completely unreasonable underdeclaration of sales described by Martyn as a "fantasy" at Tribunal. Following legal discussions, HMRC withdrew ten years of discovery assessments reducing its claim from £350,000.00 to £133,000.00. Working over night we were able to demonstrate to the tribunal the next day that HMRC's case was based on calculations that were fundamentally flawed and the claim was reduced to zero. Please click here to read a recent article about this case in the national press. Martyn's comments are towards the end of the article.

Special Relief claim for 6 years accepted in full
The taxpayers self assessment liabilities were over £30,000 plus over £17,000 in penalties and interest for these years. This was reduced to zero. You can read about this result here.

HMRC; Self-Assessment liability of £61,000 reduced to nil
HMRC stated that they had "reason to believe" our client's self-assessment was incorrect and made the amendment. After our involvement, this was reduced to nil. You can read about this by clicking here.

HMRC WITHDRAW; Company Tax Return investigation
HMRC withdraw completely upon our involvement.

TRIBUNAL; Self Assessment/PAYE issue. HMRC withdraws from Tribunal
After protracted arguments with HMRC we decided to take this case to Tribunal. HMRC withdrew all notices we were appealing rather than proceed with their unsustainable case.

HMRC CANCEL PENALTY; Civil Evasion penalty of some £45,000
Yet again HMRC have sought inappropriately to impose on the individual in an endeavour to obtain payment from him in respect of a Ltd Company debt. The penalty is cancelled after our involvement.

TRIBUNAL WITHDRAWAL; Appeal against rental income assessments and penalties
Following our detailed pragmatic assessment HMRC yet again withdraw from their "fully prepared" case and are not prepared even to present at tribunal. In HMRC's own words, they did not proceed having "further reviewed HMRC's decisions and concluded that they are flawed".

HMRC WITHDRAW; Statutory Demand
Yet again HMRC's endeavour to pursue things to bankruptcy in the context of an unsubstantiated debt is totally thwarted upon our involvement! The original debt was in excess of £100,000. We are still disputing the residue of £6k and will seek compensation for HMRC's inappropriate conduct of the case.

HMRC WITHDRAW; Appeal against requirement to provide information in respect of a private account accepted
This was a particularly important issue of principle where HMRC have accepted our appeal (without the need to go even to Tribunal) against their demand for information in respect of a private account. This is an important decision in that it further reinforces the principle that HMRC is limited as to the private material that it can require taxpayers to provide.

HMRC WITHDRAW; CIS Challenge relating to self employed sub contractor / employed status
HMRC withdraws from the challenge of our appeal, on this occasion an important CIS issue relating to the employment of subcontractors!

HMRC WITHDRAW; Double investigation closed without adjustment; argument regarding excessive use of till "no sale" button refuted
This was a double whammy with two associated companies under investigation in respect of which both were closed without adjustment. Part of the unsustained challenge by HMRC was that the till no sale button had been used to hide sales.

HMRC WITHDRAW; close case without adjustment or penalties, data accepted in full and Repayment made
The client was of course very pleased not only with closure but a repayment to boot! HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
HMRC are required to reopen the case and conduct a statutory review, following which HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC remove VAT financial security request.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC have no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
After listing this case at Tribunal, HMRC decided to withdraw rather than challenge our arguments.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC choose to withdraw without personal pursuit of the director!

HMRC WITHDRAW; close case without adjustment or penalties
This involved a substantial business in respect of which the investigation had simply dragged on until we forced closure by HMRC by making them realise they couldn't challenge our arguments at Tribunal.

HMRC WITHDRAW; close case without adjustment or penalties
Challenged appropriately HMRC had no choice but to withdraw.

HMRC WITHDRAW; close case without adjustment or penalties
HMRC accepts our estimated figures, faced with which HMRC has no choice but to withdraw.


Tribunal Case Closures

TRIBUNAL; Defeat of HMRC's VAT Penalty Tax Tribunal June 2016
We represented a client appealing against a penalty assessed by HMRC for a failure to include VAT in a VAT return. We successfully contested the HMRC case for a penalty payment charge of £170,000 and the judgement was for a reduced penalty charge of £25,500.

TRIBUNAL; Overturn HMRC and accept appeals out of time
The client was facing bankruptcy proceedings in respect of assessments that had not been appealed and which were two years out if time. Following a personal presentation by Martyn Arthur Tribunal Judge John N Dent granted the out of time appeals!

TRIBUNAL; Defeat of HMRC's Negligence claim in completing return forms Sch 24 FA 2007
HMRC is empowered by reference to Sch 24 FA 2007 to charge penalties in respect of negligence in the event that an incorrect return is submitted. In this case however the taxpayer had taken advice as to the nature of the issue and believed the entry in his Return to be correct. Judge Jonathan Cannon found that under paragraph 18(3) a penalty was not due if the taxpayer had taken reasonable care and that he had done so in this case.
Full Decision
Shortened Version

TRIBUNAL; Accepts taxpayer evidence contradicting HMRC's reliance on statements made by taxpayers in meetings etc
HMRC frequently, or indeed almost inevitably, seeks to rely on information given by taxpayers in circumstances where the taxpayer does not understand or has not fully thought through what they are saying. Tribunal recognises stress and other issues arising in such circumstances. In this case Judge Jill C Gort found for the taxpayer even though his evidence on the day contradicted what had previously been stated.

TRIBUNAL ; Accepts that payments made without formal evidence but claimed on the balance of probabilities
This was a case where the taxpayer had claimed wages but not retained appropriate records. On appeal at Tribunal Judge Andrew P Long accepted the verbal evidence given by the taxpayer. A further separate matter was conceded by HMRC.

TRIBUNAL; Attention to detail and compilation of evidence; S(1) & S(3) Tax Credits Act 2002
This was a case where HMRC had a very tangible argument that claimant's claim to tax credits on the basis that she lived alone was discredited by the circumstances. After careful consider of the evidence Judge Mrs F J Green decided that the claimant was entitled to the benefit.

TRIBUNAL; HMRC intransigence
HMRC may well seek to stick with a case even in circumstances where a compromise is reasonable and acceptable. In this case it was necessary for the case to find its way to full tribunal before HMRC was prepared to agree by consent.

TRIBUNAL; Gross Payment Status Withdrawal appeal succeeds
Appeal succeeds !

Outcome of a £125,000.00 risk results in a £7,000 repayment
The client and his accountant were very content with the outcome of this long-standing matter!

Penalties can be incorporated into global settlements
The Investigation derived from information passed to HMRC in respect of substantial cash sums found in a safety deposit box seized in a bank raid by the Metropolitan Police in 2008 although the investigation has been concluded without adjustment in relation to cash discovered. In relation to other matters a settlement, whilst substantial relatively, was "very acceptable" to the client involved a global figure incorporating penalties.

Managed Service Companies
HMRC accepts that tax Income Tax due in cases where Managed Service Company Legislation is shown to apply can be offset by tax already paid.

Long standing (5 year) enquiry with very substantial risk
Closed by HMRC concluding before the case reached the day of the Tribunal hearing with diminutive settlement.

Long standing enquiry with very substantial risk
Closed by HMRC with taxpayer's contentment with figures before the case reached the day of the Tribunal hearing.

Long standing technical dispute about the treatment of funds received by a Deceased's estate following death
Agreement reached with HMRC following listing for Tribunal.

HMRC will generally compromise
The financial compromise was achieved in this case.

Penalty on undeclared income is just 15%
The penalty structure of 15% (maximum possible 100%) is agreed following negotiations with us!

Company Dissolution achieved
This dissolution was achieved regardless objections by HMRC.

HMRC permit penalty suspension
The taxpayer successfully completes requirements regarding penalty suspension.

Footnote; Tax Chamber, Tribunal Service
It is difficult to write highly enough about the recently introduced Tax Chamber to the Appeal Service, which bears absolutely no comparison to the old Commissioners System which it replaced.

HMRC is essentially a predatory organisation charged with a responsibility with generating tax. Conversely the Appeal Service is charged with conducting a thorough assessment of a situation, and coming to an objective conclusion which serves the interests of equity and is based on the balance of probabilities.

The Service itself is free so the only costs incurred by the client are our fees. Going to Tribunal can thus actually be less expensive, more likely to be successful, and potentially speedier than a prolonged exchange of correspondence with an entrenched tax inspector. Additionally HMRC may well be more likely to back down when faced with a Tribunal rather than the protests of an agent.

We offer a comprehensive service from case preparation through to representation at the Tribunal Hearing. Hearings are informal and very "user friendly".

*This case went before the Benefits Tribunal.

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