HMRC Penalty Liability Notice Withdrawn
In a previous article ‘KANGS Successfully Appealed an HMRC Personal Liability Notice Out of Time,’ we explained how we assisted our client obtain permission to Appeal a Personal Liability Notice, issued by HMRC even though the permitted time for doing so had expired by several months.
Since that permission was granted, the team at KANGS has spent several months mounting a determined and detailed challenge to the Notice. This has resulted in HMRC conceding its position and accepting that there is no evidence that our client had deliberately sought to create a tax loss. HMRC has therefore withdrawn the Penalty Notice.
Nazaqat Maqsoom of KANGS this very successful outcome was achieved.
Background to the Personal Liability Notice
Our client was a director of a labour supply company that fell into liquidation. As part of a VAT investigation, HMRC issued an Information Notice requesting various documents, but our client never received it.
HMRC subsequently issued penalty assessments against the company, alleging that inaccurate information had been submitted deliberately, before issuing our client with a Personal Liability Notice for more than £300,000, making him personally liable for the company’s debt.
Although his appeal was ‘out of time,’ following representations by KANGS, HMRC conceded and agreed that our client should be granted permission to submit an Appeal.
How We Assisted Our Client
Once the Appeal proceedings had commenced, HMRC served its Statement of Case, which outlined the facts and law upon which it relied to justify issuing the Personal Liability Notice.
Once both parties had submitted details of the evidence to be relied on, our client, on our advice, opted to proceed by way of the Alternative Dispute Resolution (ADR), and a mediation was arranged.
Throughout the process, the team at KANGS:
- attended our client taking his instructions, advising him upon his position, the strength of HMRC’s Statement of Case and the procedure to be followed in pursuing a successful outcome for him,
- held several meetings with the appointed ADR mediator during which we highlighted issues of concern including the failure of HMRC to provide any substantial evidence to support its allegations,
- prepared Witness Statements supportive of our client’s contentions, and collated and examined further contemporaneous evidence throughout the course of preparation,
- constantly pressed HMRC to review and consider the overwhelming evidence which we had provided and withdraw the Penalty Notice.
The Successful Outcome
Eventually, having considered all of the available evidence and the concerns expressed by the mediator, HMRC conceded that there was no evidence to justify its stance and confirmed the Penalty Notice would be withdrawn.
Our client was highly delighted with this successful outcome. The prospect of such an enormous financial penalty had caused intense stress and anxiety for him and his family, who would have faced severe financial consequences had the Penalty Notice not been withdrawn.
How Can We Assist?
KANGS has years of experience assisting individual and corporate clients involved in disputes with HMRC. Such disputes are often complex and require specialist assistance and representation.
From the outset of an HMRC investigation, through to its conclusion, we work closely with our clients helping them understand their position, navigate the process and provide them with strong representation and support tailored to their circumstances.
If you need assistance with a HMRC matter, whether a VAT assessment, COP9 investigation or any other type of tax dispute with HMRC, please do not hesitate to get in touch. We would be delighted to hear from you, contact our team using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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