Unnecessarily prolonged investigation
Our final speaker had been subject to an enquiry lasting seven years. The client incurred significant losses during the global recession of 2008 and claimed tax relief accordingly. HMRC believed that the accountancy advice he had followed at the time was incorrect, and, due to the time taken to conclude the investigation, he was no longer able to claim any relief at all. Not only this, he was also accused of having acted deliberately, despite having followed professional advice.
Buzzacott first persuaded HMRC that the client had not acted deliberately, and then demonstrated how the client was able to use previously unclaimed losses against the tax liability. After seven years, HMRC settled the case for less than £5,000, having originally been seeking more than £350,000.