Tag: Taxation

Post Office Scandal Mr Bates LEXLAW Tax Disputes HMRC Solicitors Appeal

British Post Office Horizon IT Scandal: HMRC’s ancillary attack on UK Postmasters

HMRC have been using Horizon Data to raise tax assessments and tax penalties against innocent sub-postmasters. In one such case only after a six year battle when HMRC faced paying costs did they decide to withdraw their tax demands. Even now they refuse to recognise their misconduct should be punished by them paying indemnity costs and have threatened the sub-postmaster victim with a costs order simply for daring to ask for his full costs.

HMRC Tax Disputes Litigation Solicitors Office Barrister London

HMRC Advice for the tax treatment of Interest Rate Hedging Products (IRHP Review) redress payments

HMRC has issued tax advice leaflets for banks to hand to customers receiving redress from mis-sold Interest Rate Hedging Products (IRHP), urging correct tax return reporting. Affected banks must review sales since 2001 under FCA supervision, leading to customer compensation. Redress payments, consisting of basic redress, 8% compensatory interest, and consequential losses, are generally taxable income or subject to capital gains tax. Individuals should account for tax deducted from interest. HMRC recommends consulting an accountant for complex scenarios.

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.