Category: VAT Fraud

Expert VAT penalty defence guide by LEXLAW. Learn how UK tribunals assess “reasonable excuse,” when it applies, excluded grounds, case law insights, and how to maximise your chances of success against HMRC.

How to Appeal HMRC VAT Penalties: “Reasonable Excuse” Defence Guide 2025

Expert guide to VAT “reasonable excuse” defences. Learn how to successfully challenge HMRC penalties, surcharges & late filing penalties with proven legal strategies from specialist tax dispute solicitors.

fraud dishonest assistance litigation privilege financial services bank vicarious liability

High Court considers legal privilege in case concerning fraudulent trading and dishonest assistance

The High Court held RBS and Natwest vicariously liable for traders assisting in fraud, despite lacking actual knowledge of the fraud. Read the full judgment for Bilta (UK) Ltd & Ors v Natwest Markets Plc & Anor [2020] EWHC 546 (Ch), which case concerned legal privilege amongst allegations of fraudulent trading and dishonest assistance.

Litigation Experts London UK

KPMG Expert Evidence fielded by HMRC: The Need to Respond

HMRC uses complex expert evidence from KPMG in VAT and MTIC fraud cases to challenge appellants. Without your own expert response, this evidence may go uncontested, risking your case. Early and expert legal support is vital to protect your interests and effectively counter HMRC’s claims. Contact Lexlaw Solicitors for professional advice and representation.

The Court of Appeal is a grand and imposing building, often located in the heart of a major city such as London. Architecturally, it combines classical and modern elements, featuring large stone facades, tall columns, and grand entrances symbolising the authority and gravitas of the court. Inside, the courtrooms are spacious with high ceilings, wood-panelled walls, and elevated benches where the judges sit. It has a formal and solemn atmosphere, reflecting its role as the highest court of appeal in England and Wales before the Supreme Court.

Court of Appeal Decision: Mobilx, Blue Sphere, Calltel

The Court of Appeal has clarified the ‘Kittel’ test in VAT fraud cases, ruling that the key question is whether a trader should have known their transactions were connected to fraud, rather than whether it was merely likely. HMRC bears the burden of proof to show the trader’s knowledge. This decision helps genuine traders defend against denied input tax claims, but full, robust responses to HMRC’s fraud indicators remain essential. Contact Lexlaw for expert VAT litigation advice and representation.

Brayfal Decision Highlights the Importance of the Three Person VAT Tribunal

The Brayfal Tax Appeal Decision highlights the significance of a three-person VAT tribunal in complex high-value fraud cases. Unlike a two-member tribunal with a judge, where the judge’s opinion can be overruled by the other member, a three-person panel ensures balanced decision-making. Lexlaw advocates for future VAT tribunal hearings to be heard by two chairmen and one judge to improve fairness and expertise. Contact Lexlaw to discuss the implications of this decision and get expert VAT litigation support.