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 is a partner whose experience prior to joining FWJ included 18 years at HMRC working for their National Tax Investigations Team. He has undertaken a significant amounts of VAT fraud and investigation work over his 30 year career.
• Stephen Downie is a partner with significant tax experience and is also a qualified accountant and previously spent time working at the Insolvency Service.
• Pembe Ramadan previously spent 6 years at HMRC as an in house litigator. Pembe is a qualified Civil and Commercial Mediator and has attended over 60 First Tier Tax Tribunals during her career.
• Anita Sharma who is highly experienced in HMRC claims, often involving complex tax litigation, VAT investigations, appealing HMRC decisions and dealing with matters in the Tax Tribunal.
• Phoebe Pexton who specialises in a range of cases, such as tax investigations, Code of Practice claims and R&D tax credit defence.

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