Anthony Haycroft successfully represents construction company and director summonsed for failing to comply with a VAT notice
21st November 2023
Anthony Haycroft was asked in March 2023 to represent a construction company and director who had been summonsed for failing to comply with a VAT notice to provide £120,000 security following falling into VAT arrears of £80,000. The company and director faced fines of up to £20,000 each.
An appeal against the notice out of time was lodged to the Tax Appeals and the criminal case adjourned pending the outcome of the appeal. Meantime the client was put in touch with a specialist accountancy firm and advised to clear the arrears, to offer to change accountancy systems and to offer a staged payment programme.
On the eve of the appeal hearing, following discussions with HMRC in early November 2013 the appeal was withdrawn and HMRC then withdrew the notice unconditionally with no further security sought, nor costs. Negotiations were then entered into with the Crown Prosecution Service who were persuaded to discontinue the proceedings against both the company and the director again with no costs being sought. As such the company and director avoided criminal convictions and penalties and the director also avoided potential director disqualification proceedings.
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