TaxAdministrationLambasted consultancy was hired by Treasury

Lambasted consultancy was hired by Treasury

Rirm criticised for tax credit advice paid £115,000 by Treasury

A small firm criticised in a High Court judgment for poor advice given on R
&D tax credits has received huge sums from the Treasury for consultancy
work.

Following a Freedom of Information request, the Treasury revealed details of
the top eight management consultancy contracts by value over the last three
financial years.

LF Consulting, which advised BE Studios in its R&D tax credit claims that
called into question the operation of the R&D system, is listed as sixth on
the list, having been paid £115,650 by the government for unspecified work.

The Treasury refused to reveal any more details of the contract, which will
prove extremely embarrassing in advance of the pre-Budget report, where Gordon
Brown is expected to trumpet his R&D tax credit system.

Although it was a flagship scheme, claims for the credits have been dogged by
administrative issues, with tax inspectors reportedly ill-qualified to assess
the claims.

BE Studios had successfully made claims through LF Consulting for more than
£150,000 of the credits, which a High Court judge ruled had been given
inappropriately.

LF Consulting director Alan Price had, the judge said, not possessed ‘the
technical background and knowledge’ to advise on the claims, nor had he
consulted relevant guidelines as ‘he should have done’.

The judges added: ‘He must have realised that the claims for R&D tax
relief he was submitting to HM Revenue & Customs were grossly exaggerated.’

LF Consulting had also made claims for the credits, Accountancy Age revealed
earlier this year. The west London-based firm is overdue on its filing of last
year’s accounts.

LF Consulting could not be reached for comment.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter