Tax Dispute resolution

Sometimes, HMRC enquiries do not involve any allegation of fraud but are simply challenges as to the way in which a particular item of expenditure or income should be treated for tax purposes.

Technical challenges

Although any tax return can be subject to enquiry, most technical challenges relate in practice to the computation of business profits. And with the increasing complexity of tax legislation and the pressures on HMRC to fill the gaps in the Chancellor’s budgeting, this kind of thing is becoming more and more common. For details of some of the many areas in which we have seen activity click here.

Technical challenges to the tax treatment of a particular receipt or expense are superficially less stressful than a challenge to your honesty. But if the amounts are substantial the effects on a business can be devastating, particularly if the matter relates to a number of years. Perhaps the most obvious example is a status dispute, where HMRC seek to recategorise sub-contract workers as employees and to collect PAYE tax and national insurance contributions, often for a number of past years: but this is only one example of the kind of challenge that can arise.

We have long and very successful experience of disputing with HMRC the interpretation of tax law, case precedent (and even HMRC's interpretation of their own internal guidance) including successful presentation of cases before the First-Tier Tax Tribunal. If you have a good case, we will advise you on how best to pursue it. If we think your case may be less than copper-bottomed we will bluff with the best of them (dealing with HMRC has been likened to a poker game) and if necessary negotiate the best possible settlement for you, using HMRC’s published Litigation and Settlements Strategy to the full where appropriate. Whatever the challenge, it's good to know you have experienced tax professionals batting for you.

Insurance

BKL clients are able to take advantage of insurance at favourable rates against the professional costs of resolving tax disputes and also district-level investigations. If you are not covered and would like to have more information about the costs and scope of the cover offered please contact us. But don’t wait until HMRC have issued an enquiry notice: for some reason underwriters seem strangely reluctant to offer theft cover after the burglar has arrived!