HMRC -are they catching fraudsters or are they the fraudsters?

HMRC -are they catching fraudsters or are they the fraudsters?

Having worked in the professional world of accounts and tax for over 20 years , I have historically had a great deal of respect for HMRC , it certainly isn’t an easy undertaking to look over the various complex tax regimes and ensure the UK operates a fair system.

However, there is no denying that there has been a massive decline in service and expertise, they are very quick to demand any tax due to them but if they owe you or your company any money be prepared to have a lengthy fight on your hands.

Over the past few years we’ve seen the loss of knowledgeable experts to speak with, we’ve been told of 6 month delays to open post and have you tried calling HMRC recently?- well you’re lucky if you can actually get through at all.

Having spoken to fellow tax professionals it seems HMRC are really making things difficult , particularly if they owe a tax payer money.? ?My area of expertise is R&D tax credits.? Over the past couple of years or so HMRC have rightly so been challenging claims, the industry has been murky and questions needed to be asked, this has been frustrating and lengthy for those of us submitting genuine claims. ?Letters from HMRC have contained multiple errors which would be laughable if it didn’t impact so much on the livelihoods of the average business person.? Gradually we’ve worked with this and have successfully appealed these challenges.

Recently things have changed and got far worse. It appears that HMRC are acting under a directive from the new government, that directive seems to be “ don’t pay anything for innovation “ companies up and down the country are receiving letters saying their R&D tax credit claims have been declined .? “why?” is the question anyone would want to know, but ….

?

HMRC say “ we do not need to give a reason “

We say “wow are we living under a dictatorship?”

HMRC know that these letters are scary and that most companies won’t dare push back and this means that some sort of bizarre anti-growth and anti-innovation target is hit . Genuine companies have innovated and taken risks, HMRC are unethically pulling the rug from under them

So who are the fraudsters?? Well I will let you decide

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Vicky Newham

Founder – Venture Tax

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Andrew Gibson

External Engagement Officer at The North East Fund Ltd.

1 个月

It really shouldn’t have to be a fight to get people the % of money that they have spent on genuine innovation but I know you are well armed and ready to battle where needed.

Andrew Gibson

External Engagement Officer at The North East Fund Ltd.

1 个月

Excellent article Vicky. I think this is what we spoke about recently? I know you now have a method to appeal these cases which has been successful but I can imagine it’s a lot of extra work for you and the team. It’s so important that innovative companies are given the tax breaks which have been available from successive governments or some will simply see innovation as too risky which is the hidden recipe to growth.

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