2009 – Corporation Tax reduced from £70,400 to £13,397.27!


Summary of Case: November 2006

5.1 On 29th November 2006 HMRC (Local Compliance, North West and Midlands) commenced an enquiry on the accounts of the company (haulage contractors) by reviewing the two years ended 31 March 2004 and 31 March 2005.

5.2 Detailed correspondence occurred between the accountancy practice and HMRC and in a letter dated 17 March 2009 HMRC (Local Compliance, Large and Complex Business, Coventry) stated their willingness to accept a sum of £70,400.00 in full and final settlement.

5.3 James Wright-Anderson was appointed to deal with HMRC on 20th May 2009 and on that day formally lodged an appeal against the sum of £70,400.00 as notified.

5.4 Following a reply from HMRC dated 4 June 2009, a full case was put to HMRC in a letter dated 12 June 2009 as the two central parts of the case were largely  based on “Section 419 (4) ICTA 1988”and Section 115 (1) ITEPA 2003.

5.5 On 1 September 2009 a solution for an acceptable settlement was detailed to HMRC, this was followed by a proposal from HMRC dated 22 September 2009 proposing to agree £10,329.97 and although penalties were not being sought they required interest of £3,067.30 which would result in a total of £13,397.27 instead of £70,400.00.

5.6 A net savings of £57,002.73 was agreed by James Wright-Anderson within a period of five months and on 7 January 2010 a formal letter from HMRC, Large and Complex Business, Coventry thanked the firm ( with the assistance of Julie Prodger) for resolving complex  matters.