Cowboy hat-wearing PR guru Richard Hillgrove will be defending himself on charges of tax fraud in Bristol this week.
Opening the prosecution on Tuesday (4 March), Mr Joss Ticehurst QC outlined how Hillgrove is alleged to have cheated the public revenue of more than £90,000
The first count deals with Hillgrove’s failure to pay an estimated £52,000 in VAT, for which he allegedly billed clients but did not pass onto HMRC; the second relates to £41,000 in PAYE, which he deducted as from staff salaries, but did not remit to HMRC.
Ticehurst told the court: “He was in business, paid employees and had a responsibility to pay HMRC. He was billing clients, they would pay, he ought to have paid HMRC, but he didn’t.
“He failed to grasp this concept and spent too much money on the business, money that should have been paid to HMRC. In doing so he was dishonest.”
The prosecution’s case will turn on evidence from his former accountants Bishop Jones, who had warned Hillgrove of the VAT he owed, but he carried on transferring money to personal accounts and spending lavishly on hotels and school fees, the prosecution said.
There will also be corporate complications to navigate. The tax liabilities initially arose in a limited liability partnership Hillgrove ran called RJH Management LLP. Bishop Jones negotiated a time to pay agreement with HMRC to settle the outstanding liabilities in January 2011.
At roughly the same time, however, a new company was created - Hillgrove Public Relations Limited - which registered for VAT in March.
Hillgrove’s contention is that he didn’t pay due to poor accounting advice, and that he was not avoiding paying the pay, but buying some time.
Hillgrove is defending himself at the trial and at one point the judge intervened to emphasise that he has to make sure he keeps a balance and that Hillgrove’s case is put. He explained that the Crown will have to prove that when Hillgrove failed to pay he was being dishonest and he was aware he wasn’t going to pay.
There was a previous trial in this case, the judge added, but it was abandoned after three days as the court ran out of time,
Questioning the first prosecution witness, HMRC officer Fiona Subrue, Hillgrove asked why the company named in a letter to Bishop Jones was Hillgrove Public Relations when it was intended for RJHM LLP
“I thought they were the same company,” she replied.
Hillgrove came back: “As an HMRC officer would it not be important if a company could be wound up? I’m not a tax fraudster. I’ve always wanted to pay my tax...the trading company name can be LLP but it can be totally different from what’s on the tax record.”
The trial was adjourned at 3pm and will resume on Wednesday 5 March. Coverage of Day 2 follows, but comments have been disabled on this article for legal reasons.
