Case Studies

Case Study: Tax Investigations in the Hospitality Sector

An independent analysis of HMRC enquiry data by the Institute for Fiscal Studies (IFS) has revealed nearly 60% of businesses, within the hospitality sector, owe extra tax after an investigation. That alarming success rate is one of the reasons why we encourage our hospitality clients to subscribe to our Tax Investigation Service.

Case Study: Tax Investigations in the Manufacturing Sector

Assembling a tax enquiry

This engineering company received an enquiry notice from HMRC asking to review the reported number of associated companies and its effect on the corporation tax computations. The initial review revealed that one of the three associated companies had been missed and further tax would be due.

Case Study: Tax investigations in the Healthcare Sector

There is nothing particularly unusual about these enquiries and therein lies the problem – even a straightforward enquiry is likely to cost the equivalent of 10 years subscription to our tax investigations service.

Case Study: Tax Investigations in the Food & Drink Sector

Pubs, bars and clubs, as well as cafes, have always been popular targets for HMRC to investigate. This
is primarily because these businesses are deemed to be cash based enterprises, with plenty of scope and opportunity for record keeping errors and tax mistakes. Subscribing to our Tax Investigation Service means when the seemingly inevitable happens, our professional fees to assist you will be covered.

Case Study: Tax investigations in the Property Sector

In their dash for cash to maximise the tax take for HMRC, inspectors often argue disproportionately when they know they have a weak case. Or, they change tactics part way through an enquiry to exploit perceived weaknesses elsewhere. It is no wonder so many people subscribe to our Tax Investigations Service when they know inspectors drag out enquiries excessively in their desperation to generate extra tax.

Architecture firm

HMRC began an investigation into a firm of architects by requesting a formal visit.

Case Study: Tax Investigations in the Agriculture Sector

Separating the wheat from the chaff

HMRC recently launched an enquiry into a farming business, asking for an analysis of the general farming activities, rent and rate expenses; and capital allowances computations for plant and machinery. Although HMRC are not looking at everything within the accounts, the initial cost estimate of £1,000 has already been exceeded and could easily double, subject to HMRC’s approach.

Case Study: Facilitating partner conference

We regularly facilitate partner retreats/conferences for law firms.  These are usually a full day strategic session to include workshops and breakout sessions, all ultimately with the intention of bringing partnerships closer together to achieve their strategic aims.

Topics covered can vary including goal setting, strategic reviews, ultimate objectives, exit planning, growth, lock up reduction, profit maximisation etc.

Case Study: Profit Share Review

Profit share seems to be a particular hot topic for law firms at present, with many reviewing whether their profit share mechanism is appropriate.  Most are considering whether it is fair; whether it is in line with competitors/the market; whether it encourages the right behaviours; and whether it helps to attract and retain the best people.

Case Study: Tax Consultancy Review Results in £25,000 Refund

Often a simple tax consultancy overview can result in huge potential benefits to our clients, as was the case with the example below:

We received a telephone call from the daughter of an ex-client.  Sadly her mother had passed away recently, and she was collating paperwork for the solicitor acting for her mother’s estate.

Case Study: Governance & Profit Share Review

Governance and profit share seem to be particular hot topics for law firms at present, with many reviewing whether their approaches are appropriate.  Most are considering whether they are fair; whether they are in line with competitors/the market; whether they encourage the right behaviours; and whether they help to attract and retain the best people.