Case Studies

Examples of our solution focused approach to our clients’ needs:

Successful outcome of a “Determination”

A Determination may be issued by HMRC when they require a tax return to be filed and it has not been filed by the filing date.  The taxpayer then has a period of 12 months to file the return. There is no right of appeal against a Revenue Determination but the submission of the completed tax return will take the place of the Determination and the determined amount of tax will be automatically amended to the return amount. Any related interest, surcharge and payments on account will also be automatically amended. If the return has not been filed, then the Determination stands and whatever the tax assessed by HMRC is payable.

We successfully managed to get a Determination amended despite the fact that our new client did not file his tax return until after the 12 months deadline.  It took a great deal of effort and there were extenuating circumstances, but our client was eventually saved some £30,000 in tax.

Lateral thinking

Our new client had two places of work – a consulting room at home and another some 200 miles away.  HMRC disallowed the expense of travel between the two places of work on the grounds that the room 200 miles away was the principal place of business.  We examined the situation and encouraged our new client to promote the home office as the principal place of business and the distant one as the subsidiary.  His stationery and website were re-designed to show the new status of the consulting rooms.

HMRC accepted the change and the costs of travel were allowed.

Incentive

Our new client ‘s business was clearly loss-making.  His first thoughts were to ask us how to cut costs.  The senior manager wanted a 10% increase in his salary.  This was clearly not affordable.  Our analysis was that whilst some savings could be made, the business was not selling or promoting the goods as well as could be expected.  We suggested that the manager be put on a basic plus commission wage structure.  This meant that if sales increased from the current level he could achieve his pay increase.

By enthusing the staff and setting budgets and targets the business is back to profitability again.