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
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has now withdrawn the original assessments.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
“If an unregistered trader should have registered for VAT, then HMRC can
legitimately raise an assessment of tax for the previous 20 years.”
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