Anyone who is, or has been, under investigation by HM Revenue & Customs (HMRC) will know what a battle it can be to reach a fair settlement.

When clients come to us, whether at the start of an investigation, or part way through, they are usually keen to reach a deal which they can live with and hope HMRC can too.

But sometimes that goal can be elusive, especially with a stubborn Inspector on the other side of the desk making false insinuations, or simply refusing to listen to evidence. We say desk, but these days it is more like a kitchen table!

HMRC does offer Alternative Dispute Resolution as a means of trying to reach a negotiated deal and that can be a successful path to take, even if some and not all of the contentious issues are resolved amicably.

However, the Tax Tribunal may ultimately be required to rule on a dispute, which can strike fear into people worried about appearing before a Tax Judge and the potential costs of going to ‘tax court.’

We look at the full facts and circumstances of a case before recommending a client go down the Tribunal path. One of the primary considerations is always the amount of tax at stake. After all, it would not make much sense to go to Tribunal for the sake of £1,000.

There are also the clients who are resolute and stick to their metaphorical guns to fight HMRC. They know they are right and HMRC is wrong.

We recently acted for a client in the energy sector. HMRC made a whole series of unsubstantiated accusations about the business accounts and the case went to Tribunal. At the Tribunal hearing HMRC were unable to prove the actual company records were wrong and went on to make a number of arguments, which later turned out to be contradictory, in an effort to try and secure a successful outcome.

On the closing day, realising it had no chance of winning and to ensure the case was not made public and the decision published, HMRC withdrew in full.

HMRC had sought in excess of £5m, including tax, interest and penalties, but walked away with nothing after a 10 year investigation.  We are currently pursuing costs against HMRC on behalf of our client.

This is the type of work we at Independent Tax do day in day out. Strong by your side and strong in your defence.

If you have an ongoing tax dispute and could do with some sensible and practical advice, then give us a call on 0800 001 6686 or email us at info@independent-tax.co.uk