Keiran Farrer, 39, has been jailed for four and half years for tax evasion including VAT fraud of £280,000 and benefits cheating. Mr. Farrer had set up fraudulent business through which he stole VAT and used it to pay for his private flying lessons and lived the life of luxury. Mr. Farrer already had several convictions and a suspended prison sentence at the time he was involved in tax evasion. HMRC’s tax investigation by numerous offices helped uncover his tax fraud and he has now been put in prison. Read more…
After our successful seminar on 28 February 2018 at Doubletree Hilton, Holborn, London, we have been requested by a large number of candidates to host regular webinars in relation to tax investigations and various technical tax issues. Our first webinar will be held on 28 March 2018 at 1pm and will cover detailed insight into “Tax investigations and how to get these closed effectively”. If you would like to attend the webinar, please register your interest at email@example.com. The webinar will count towards your CPD if this is relevant to you.
Jonathan Benjamin Schofield, 32, a boss of a security company, has been jailed for three years after being involved in tax fraud of almost £500,000. He cheated the HMRC by underpaying VAT, income tax and national insurance. During the tax investigation by HMRC, Mr, Schofield failed to attend several meetings and did not cooperate in any way. On the contrary he continued enjoying his lavish lifestyle which he earned through tax evasion. A confiscation order has been made to recover the tax he stole and will include the sale of his assets/ properties. Read more..
This case was referred to us from another accounting firm in London. The client had been under enquiry for some time for undeclared income relating to the main business. HMRC’s focus was that the business had undeclared sales and that the director had been pocketing the cash sales to fund his living costs. Our tax investigation specialists considered the case in depth and how the business sales had been recorded and declared in the VAT and corporation tax returns. We also considered how the director’s lifestyle had changed over the years which showed that in reality our client’s financial position had deteriorated as the business was struggling. This was proven by way of a capital statement presented to HMRC. After HMRC concluded the enquiry for the business where some additions were made to the sales, HMRC accepted our case that there were no changes required to the director’s self assessment tax returns. The director had initially been advised that there would be a significant amount of tax and penalties payable and that he may be made bankrupt. However, after our successful negotiations, the enquiry was closed with no tax to pay. Our team at Churchill Tax Advisers is grateful to the HMRC officers involved in the case for understanding and accepting our client’s deteriorating financial position.
Our analysis: This case was referred to us after the client had been badly let down by their previous accountant. The enquiry was connected with another enquiry into the director’s limited company where HMRC suspected undeclared sales which our client blamed on the previous accountant. In our experience people get what they pay for in terms of accounting services and the quality of work done. Each time we receive a tax investigation case from another accountant, we notice a common trend of trying to pay the lowest possible accountancy fee and hence receive bad advice before they are investigated by HMRC. After the investigation, most businesses pay significantly more in fees, taxes, penalties and possible prosecution (which taxpayers normally attempt to blamed on their former accountants but it does not help their case).