We've recently had a real horror story brought to our attention. Briefly the facts are -
- Agent prepares and submits accounts/return for sub-contractor.
- Few weeks later HMRC pay refund into agents bank.
- 3 days later agent deducts £280 fee for accounts and transfers balance into clients bank account.
- A few months later client alleges he never received refund and threatens agent.
- Agents bank statements clearly show monies in and out and all bank details are correct - client refuses to allow examination of his bank statements but bank confirms transfer did go into his account.
- Client then arrives at agents home and threatens agent with physical violence and police called to remove him.
- Client then rings HMRC and repeats allegations to them.
- After becoming aware of this the agent writes to HMRC even enclosing copies of his bank statements proving payment made.
- Despite this absolute proof HMRC then "pull" all the agents clients, freeze all refunds, and start writing direct to agents clients.
- Effectively agent put out of business by malicious false accusations of one demonstrably deranged client.
The agent quite rightly is seeking damages and compensation from HMRC for unlawful restraint of trade, and, wants the client arrested for his attempted extortion.
Personally whilst the client is clearly an idiot, the behaviour of HMRC in this is unforgivable.
I'm currently formulating claims for the agent to file against both HMRC and the (ex) client.
Has anyone experienced or come across anything like this before ?