Critchleys’ VAT team has forced H M Revenue & Customs to drop a very large VAT demand on a takeaway restaurant.
Customs turned up unannounced at cashing up late on a Friday night. Takings were higher than usual, and when further enquiries were made the officers present were not satisfied by the explanations given by the client and his existing accountant. They identified what they saw as discrepancies in bankings, average takings and purchases, and alleged that the proprietor was only declaring a proportion of the restaurant’s takings and purchases.
At this stage Customs were entrenched in their conviction that large sums of VAT were due. However, Critchleys took on the case and successfully rebutted the allegations, ensuring the assessment was withdrawn in full. In addition, the VAT team will be seeking a significant contribution from Customs to the cost of defending the client.