Creaseys help landowner win £0.5m tax row

Tax experts from Creaseys chartered accountants have helped save a landowner a potential £500,000 bill from the Revenue arising from a VAT dispute.

The taxman claimed a family’s private shoot was being carried out as a commercial business and, as contributions received from friends and family were above the current VAT threshold- currently £68,000- the organiser of events should have registered for VAT.

HMRC then attempted to use legislation intended for unregistered traders, to back-date estimated unpaid VAT going back 20 years, according to Creaseys.

With interest and penalties, the total assessment could have amounted to £475,000.

Creaseys referred the case to the Tribunals Service and after two years, HMRC has now withdrawn the original assessments.

Creaseys were assisted by tax counsel The Viscount Dilhorne, a Fellow of the Chartered Institute of Taxation, in defending its client.

Emma Roberts, chief executive at Creaseys, said: "This case demonstrates how important it is to ensure you have the correct advice when setting up any large venture.

"If an unregistered trader should have registered for VAT, then HMRC can legitimately raise an assessment of tax for the previous 20 years."

Further reading:

Asda loses 18-month flapjack VAT dispute with the taxman

Case against £12m fraudster is granted a further adjournment