Hi all,
I have taken on a new client a couple of months ago who left a previous accountant because during the companies first VAT inspection it transpired that the accountant / company had registered for VAT a year late - which has brought with it a huge amount of penalties & fines, which I am currently trying to challenge. HMRC have offered two methods of appeal via review or a tribunal. My initial thoughts are that a review would be the easiest route, with the argument being that the client paid for and completely relied upon the accountant to advise on matters such as this? Do you agree, is review the best route or is there anything more to be gained from a tribunal? ANy thoughts appreciated, thanks JmB
Replies (4)
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Using the taxpayer reliance on agent argument has a pretty poor success rate over the years.
If that is all your client has then good luck?
This article may assist.
https://www.taxinsider.co.uk/1408-Penalties_Lets_Be_Reasonable.html
It's not an either or. You can go for review and if that fails then head for Tribunal if the costs justify it.
I would say whichever route you go it is unlikely that you will win with your proposed argument. Look to see if there is any way to mitigate the penalties that have been levied, otherwise your client will pay the tax and penalties and avoid costly review and appeal.
There's no need for a review to be costly. That is one of the benefits - it's a 'free ' shot, even if unlikely to succeed.