A consultancy firm failed to record over £369,000 of invoices from one of its customers sparking a VAT visit from HMRC leading to a £73,000 tax bill
Bruce Thomson, the director of Accelerate Corporation defended the company at the First Tier Tribunal against VAT assessments issued by HMRC for £73,807. The accounting period for this was between September 2016 and August 2022.
HMRC’s issues with the consultancy company was invoices it had issued to Intelligent Organics Limited (IOL) for £369,000. However, IOL did not ever pay the amount.
HMRC officers conducted a VAT visit to Accelerate finding that these invoices were not in any of Accelerate’s accounts, nor the resulting debt. Because of this HMRC opened an investigation into Accelerate’s corporation tax position.
It was noted that Thomson ‘made a number of criticisms of HMRC in correspondence and in the hearing’, but Judge Anne Fairpo considered these out of the Tribunal’s jurisdiction and was not mentioned again.
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