A small retail service client, with a very poor compliance record – last 4 years accounts not submitted and determined tax assessments being demanded for payment, plus a poor VAT compliance record which meant a cycle of surcharges, interest, bailiffs calling, etc….basically, the client was in a continual crisis management mode, which was affecting their health and could have ultimately led the business to be closed down.
We were instructed once their existing accountant “disappeared”…. a recommendation from another client. Accounting records had disappeared with the accountant. We opened up dialogue with the Inland Revenue, and using details of past VAT Returns (obtained from Customs & Excise), PAYE records (obtained from the Inland Revenue), other details e.g. rates, utility bills, etc., from other sources, reconstructed a profit profile for each of the past years. These were approved by the client and were submitted to the Inland Revenue with a detailed “basis of preparation” explanation, and got the determined assessments re-opened and dismissed. At the same time Link negotiated hard with Customs & Excise to ensure that the client paid ongoing VAT liabilities and all old liabilities were restructured and paid over time, breaking the vicious circle that had meant ongoing surcharges and bailiffs’ visits etc., therefore removing the clients from the stress of the crisis management that they had been living with. In addition, to this, and directly as a result of Link’s involvement, enforcement tactics adopted by Customs & Excise and the Inland Revenue, subsequently were more sympathetic.
Date:10 October 2004
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