Managing the approach with HMRC

Effectively managing your client’s relationship with HMRC can help avoid protracted correspondence and reduce costs. Our approach adds value to our clients as it reduces the time spent responding to HMRC enquiries, and can help to mitigate or remove VAT liabilities.

How we add value

We have significant experience of working collaboratively with HMRC to secure the best outcomes for our clients and a quick and efficient resolution of issues. Our work includes:

Mapping and structuring supply chains to ensure the most efficient approaches are implemented, to minimise compliance costs and prevent unnecessary VAT registrations in overseas territories.

Reviewing supply chains from a logistics perspective, the increased importance of incoterms, the implications of trading on DAP or DDP contract terms.

Reviewing the VAT processes and procedures, the use of the Postponed VAT accounting schemes and instructions to freight agents.

Supporting clients to facilitate EU to EU and EU to non-EU transactions.

Liaising with overseas tax authorities to correct VAT treatments and manage audits.

Helping on-line retailers to manage the complexities of the Online Market place rules, the Import One Stop Shop (IOSS) and EU One Stop Shop (OSS) schemes.

How we've helped clients

Financial claims handling business

The situation

Over a two-year period, our client failed to submit VAT returns. This resulted in HMRC allocated the case to their fraud and investigation team. Our client had not engaged with HMRC to resolve the situation, which led to HMRC seeking to pursue a potential criminal prosecution.

The challenges

We supported the client to correct its VAT position and to respond to HMRC's enquiries. We represented the client in formal interviews and worked collaboratively with HMRC to address the failures and shortcomings and to explain how and why the issues had arisen.

Our solution

We calculated the VAT due to HMRC. As a result of our work the client's liability was ultimately reduced to £160,000 from the estimated assessments calculated by HMRC for just over £2 million. We supported the client with an orderly closure of the business and ensured there were no wider implications for the directors of the business. Our approach ensured the situation did not prejudice the client’s ability to undertake future business activities.