A sizeable bill from the VAT Office
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28th May 2013
We know clients often
get unreasonable demands from HMRC, but one woman’s recent case has
how little scrutiny HMRC give to the demands they send out.
Florence Coke, who runs a cafe in Gorton, Manchester was
to discover that the VAT Office in Southend-on-Sea had sent out a
nearly £1 billion. As usual, the demand
pointed out HMRCs rights in turning up at the business premises and
business assets if she did not settle the £979,092,858 liability.
Such a case obviously raises questions about how much
scrutiny letters leaving HMRC offices are put under, as it is clear
single cafe in Manchester could not run up such a bill. Therefore, it
is worth reminding your clients
that they should not blindly follow any demand that HMRC sends out, and
most demands have an element of guesswork to them. In fact, evidence
last year showed over a
third of demands were overturned upon internal review!
If you or your clients receive a demand from HMRC, call us to
discuss ways to lower the demand value, or even have it quashed
About the Author
VAT People are leading VAT and Customs Duty
consultants based in the
North West of England. We work with a wide range of businesses
throughout the UK as well as assisting our accountancy colleagues to
unravel the thorny VAT issues for their clients. We are one of the UK's
largest and most comprehensive sources of VAT and Customs advice, our
consultancy team having over 140
years of experience in VAT and Customs
gained in either HMRC or a Big 4 accountancy practice environment.
Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.
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Article Published/Sorted/Amended on Scopulus 2013-06-06 13:51:07 in Tax Articles