HomeCase studiesSuccessfully challenging a precious metal trader’s £100,000+ VAT assessment for inter-company payments

Why the client needed our help

HMRC was unhappy with the way that our client, a bullion trader in Hatton Garden, had been treating VAT for inter-company payments and claimed that he owed them over £100,000 in tax.

How we helped

Although we were able to prove that our client had applied the appropriate VAT treatment to these payments, HMRC’s officers initially refused to look at the evidence because they disagreed with our stance and our client was forced to pay the full sum. Meanwhile, we appealed the matter to a tribunal, speaking directly to HMRC’s solicitors and explaining why the assessment was wrong.

The outcome

The assessment was subsequently withdrawn and our client got all of their money back. We also saved them around £30-£40k in legal fees by settling the matter out of court, without needing to resort to a formal hearing. We also helped them to adjust their systems so effectively that, unlike other precious metal dealers, they are no longer under the enhanced scrutiny of HMRC.

Key contacts

Andy Lynch

Andy Lynch

Consultant

Stephen Downie

Stephen Downie

Partner

Maria Koureas-Jones

Maria Koureas-Jones

Partner

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