VAT fraud

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Our expert VAT fraud investigation defence team

No other firm in England has such a blend of skill and expertise as our tax team.

• Andy Lynch. Andy is an expert on a wide range of HMRC claims and before joining FWJ, he spent 18 years at HM Customs & Excise in their National Investigation Service. His experience is unrivalled in all types of HMRC claims including HMRC investigation defence, VAT claims, R&D tax credit defence, Account Freezing Orders, Tax Disclosure, Code of Practice 8 & 9 claims, winding up petition defence and much more.
• Stephen Downie. Stephen is a Partner and a former ACCA accountant who combines financial expertise with deep legal knowledge to deliver clear, commercial advice. He acts for directors, shareholders, insolvency practitioners and private clients in corporate governance disputes, director disqualification defence, and HMRC-related claims including tax avoidance schemes, PLNs, VAT and PAYE security demands. His focus is always on achieving the best outcome for clients as efficiently and cost-effectively as possible.
• Joshua Goulding. Joshua is a Senior Associate who specialises in complex tax disputes across multiple jurisdictions. Before joining FWJ, he worked for a Big Four accountancy firm and holds an advanced certification in international tax and BEPS from the IBFD. His expertise covers direct and indirect tax disputes, HMRC enquiries, tax treaty matters, restitution claims, and litigation before the Tax Tribunal and higher courts.
• Anita Sharma. Anita is a Senior Associate specialising in tax litigation and financial disputes with HMRC. She advises high-net-worth individuals and major commercial clients on appeals against HMRC decisions, complex tax assessments, and enforcement proceedings. Anita has secured interim relief following HMRC revocations to keep clients trading during appeals and is known for achieving practical, results-focused outcomes in high-value disputes.
• Connor Coombs. Connor is a Paralegal in the tax team assisting on a broad range of HMRC investigation and defence matters. He supports clients with Code of Practice 8 and 9 investigations, time-to-pay arrangements, HMRC statutory demands and R&D tax credit disputes. Connor also helps prepare detailed evidence and submissions for use in appeals and settlement negotiations, ensuring cases are presented clearly and effectively.

Fantastic firm, nothing was to much trouble. Direct to the point, so helpful would recommend to anyone, I would definitely use them again.

A client that we defended from an HMRC claim

Introduction

VAT investigations by HMRC can be daunting and disruptive for any business or individual. At Francis Wilks & Jones, we understand the complexities and pressures involved. We are here to provide expert guidance and robust defence strategies to help you navigate these challenges.

How we can help

Our experienced team of VAT fraud specialists is dedicated to assisting businesses and individuals facing HMRC investigations. With in-depth expertise and a client-focused approach, we aim to alleviate your worries and secure the best possible outcomes.

Types of VAT fraud

• Missing Trader Intra-Community (MTIC) fraud (also known as Kittel principle or carousel fraud). Our team has extensive experience in defending businesses and individuals accused of MTIC fraud, by ensuring that your rights are protected throughout the investigation process.
• Cross-border VAT fraud. We provide expert advice on cross-border VAT issues, helping you manage compliance and defend against allegations of fraud.
• Cash VAT fraud. If you are accused of cash VAT fraud, our specialists will work diligently to examine your records and present a strong defence.
• Online VAT fraud. We offer guidance on managing online VAT transactions and defending against HMRC claims related to e-commerce.
• Payroll fraud. Our team is adept at handling payroll fraud cases, ensuring that your PAYE and National Insurance contributions are accurately represented and defended.

Triggers for a VAT fraud investigation

HMRC may initiate a VAT investigation based on various triggers, including:

• Risk-based assessments targeting high-risk industries.
• Irregularities detected in VAT records.
• Supply chain issues.
• Late filings and/or missing returns.
• Inaccurate returns.
• Referral within HMRC following a compliance/investigation of a different tax.
• Anonymous tip-offs or whistleblowing.

Our experts can help you understand these triggers and prepare accordingly, ensuring that you are ready to respond effectively to any HMRC inquiries.

HMRC investigation process

When facing a VAT investigation, HMRC officers will visit your premises to inspect inspect business records. This includes supplier and customer invoices, delivery notes, bank statements, and due diligence. They may also speak with employees on training they have received. This can be an overwhelming experience, but our team will be by your side, guiding you through the process:

• Preparation. We help you prepare all necessary documentation and ensure compliance with VAT regulations.
• Representation. Our experts will represent you during HMRC visits, providing clear communication and robust defence.
• Disclose. We will advise when to make disclosures to help mitigate any assessments, penalties and interest.
• Support. We offer ongoing support throughout the investigation, addressing any issues that arise and working towards a favourable resolution.

Defending against VAT fraud allegations

Defending VAT fraud allegations requires a strategic approach and in-depth knowledge of tax law. Our team will:

• Prove due diligence and challenge any inaccuracies in HMRC’s calculations.
• Provide immediate and expert legal advice to mitigate potential penalties.
• Develop tailored defence strategies based on the specifics of your case.
• Be with you every step of the way.

HMRC must show that the inaccuracies in a VAT return were deliberate. For notices issued against directors, whether the inaccuracies on the company’s return were attributable because of the director’s action.

Carrying out enhanced due diligence and regularly updating the checks can assist when defending the assessments and penalties.

HMRC must establish on the balance of probabilities that the individual or business knew of the connection to the fraudulent evasion of VAT.

Penalties for VAT fraud

Penalties for VAT fraud can be severe, including fines, interest, and potential imprisonment. We strive to minimise these penalties by presenting a strong defence and negotiating with HMRC on your behalf.

We strive to minimise these penalties by presenting a strong defence and negotiating with HMRC on your behalf. We will request for HMRC conduct a review of their decision. If this does not resolve the matter, we will advise you on appealing to the First-Tier Tribunal where a judge will determine whether the decision made HMRC was wrong.

Specialist services

• MTIC fraud defence. Expert legal strategies for defending against MTIC fraud allegations.
• PAYE fraud defence. Comprehensive support for payroll fraud issues, ensuring accurate representation of PAYE and National Insurance contributions.
• Carbon credit fraud: Specialist advice and defence strategies for carbon credit trading fraud.

Contact us

If you are facing a VAT investigation or have concerns about potential issues, it is crucial to seek expert legal advice immediately. Contact our specialist VAT fraud investigation team for a confidential consultation and let us help you navigate this complex process.

Andy Lynch at FWJ was literally a life saver for me. I ran in to some tax issues with HMRC and I suffer from mental health issues as well so I was a complex case. Andy took his time to professionally and accurately layout my case and assist me with finding a resolution. I researched a lot of tax advisers before making my decision and I am glad I did and relieved that I chose Andy and FWJ.

Chris Kitchen