To give you an idea of the types of queries that we deal with on a day to day basis, we have included a few case studies on a no names basis.

Case Studies

The Benefits of Enquiry Insurance

One of our clients is in the construction business. In two of the last three years, HMRC have selected his return for a full enquiry. It is likely that the key ratios on his accounts did not match with their expectations. We provided HMRC with full details of information requested and in each case, the enquiry was closed without any change to his tax return. All of our fees, which in each case exceeded his usual annual fee, were covered by our enquiry insurance.

Standing your Ground

Our client ran a sizeable payroll. There was a routine PAYE enquiry by HMRC, during which a number of minor benefits were identified. HMRC initially argued that these amounts should be included in a settlement agreement, which would cost the client around £10,000. After identifying that some of the benefits qualified as free from tax, we were able to persuade HMRC that the others should be included in the P11D’s for the year. HMRC accepted this, with the eventual cost to our client being reduced to under £1,000. Again, all our fees were met by our enquiry insurance.

EIS is Complicated

One of our clients invested in a start-up, on the understanding that it was a qualifying EIS investment. Prior to preparing his tax return for the year, the company agreed a deal with a PLC. This deal gave an option to the PLC to acquire the company at a later time, depending on targets. The company lawyers (in the City) insisted all was well, but we advised our client that his EIS relief would be lost and recommended that the lawyers check with their internal tax specialists and that he should then renegotiate. The tax specialist confirmed our view and we were then able to help our client to negotiate a better deal with the company.