A company director has lost his appeal at a First-Tier Tribunal hearing due to his failure in meeting the deadline of the appeal regarding his income tax payments. The director filed a late appeal for overdue tax payment of £2m relating to royalties.
The key red-flag which was raised by HMRC was concerning the late appeal. Did that company directors have a professional representation (accountants), if so, why did they advise him to make a delayed appeal?
Note: It’s important to note here that the role of accountant is magnified in situations like these. Your accountant should be knowledgeable enough to advise you on the best time to appeal, what information to provide, etc…
It was uncovered that the reason for the director’s late appeal was their solicitor is not a litigation specialist and that he was completely focused on another case.
Note: Ensure that whoever you work with, solicitors or accountants, prioritise you and your business.
The faulty advise that was received by the appellant depressed that a delayed appeal is the best strategy to reach a settlement. However, HMRC closed that door when it received no response from the company director and no longer allowed a delayed appeal.
The misleading and unprofessional advice received by the company director has cancelled any opportunity for an appeal. And the company director could be paying a hefty £2m.
If you want to ensure that you are always compliant and not have to undergo extensive stress and pressure from First-Tier Tribunals and HMRC Investigations, that means you need a professional accountant for your business.
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