Advising clients on VAT controversy matters across a range of sectors, including financial services, technology, consumer goods, transport and the public sector. This includes longstanding clients who are preparing for mediations and judicial hearings in complex proceedings, through to new clients who are at the very beginning of a HMRC audit and require assistance in managing the exchanges with HMRC.
What do you know now that you wish you’d known at the start of your career?
Now that’s a big question! Perhaps that I should have bought Netflix shares and enjoyed over a 12,000% return! On the work front, understanding what clients need from their advisers. Advice which is technically sound but does not have regard to the commercial factors affecting the business is of little value. It is critical therefore to understand as much as possible about your client’s business, and as quickly as possible. Do your research, do not be afraid to ask questions, and ask for feedback on whether anything could have been done better. In my experience, this is appreciated by clients.
I would add to that the importance of investing time in building a professional network and developing your personal profile. As an adviser, you do not want to be the best kept secret!
Has a recent change in HMRC practice affected your work?
Although ADR will not be suitable for all tax disputes, it is nevertheless an important dispute resolution tool: whether for the purposes of trying to resolve the dispute without the need for a tax tribunal hearing or, where that is not possible, to at least narrow the issues in dispute with HMRC ahead of the hearing.
In 2020, the FTT Chamber president issued a practice statement on ADR which was widely welcomed for its endorsement of ADR and clarification of the procedure. However, HMRC’s new ADR internal guidance published earlier this year has the potential to be a retrograde step in its broader use.
An essential feature of mediation is that the communications involved are confidential and on a without prejudice basis, which encourages the parties to speak openly and frankly. However, HMRC’s recent guidance notes on ADR includes the statement that a ‘tax fact’ provided during a mediation is not covered by the without prejudice rule.
The carve out significantly cuts across one of the key pillars of a mediation. Additionally, the lack of clarity as to what constitutes a ‘tax fact’ – defined only as ‘a fact which has legal and technical implications for a taxpayer’s liability’ – risks further undermining the benefits that an ADR process can bring to a dispute.
What development should we look out for later this year?
At some point, we can expect the outcome of the government’s consultation on the VAT treatment of fund management. There has been a mixed reaction to HMRC’s new principles-based proposal for what would constitute a ‘special investment fund’ and disappointment at the limited scope of the consultation, failing to address some important issues, such as the definition of ‘management’.
Following Brexit, it’s crucial that the government gets the strategy in respect of this important industry right and does not detract from the UK’s attractiveness as a destination for fund management. However, I shall remain optimistic that the frustratingly long period of waiting will be concluded with a positive outcome for the industry.
You might not know this about me but...
I had ambitions of becoming a racing driver. My dad built a petrol go-kart for me and my siblings and I would spend hours perfecting my skills. However, my enthusiasm was dampened somewhat following two incidents. First, when I lost a significant section of hair when it caught around the wheel; and, shortly thereafter, when an equally enthusiastic neighbour took the wheel and proceeded to run me over. The kart was decommissioned and with it my dreams of racing glory!
Advising clients on VAT controversy matters across a range of sectors, including financial services, technology, consumer goods, transport and the public sector. This includes longstanding clients who are preparing for mediations and judicial hearings in complex proceedings, through to new clients who are at the very beginning of a HMRC audit and require assistance in managing the exchanges with HMRC.
What do you know now that you wish you’d known at the start of your career?
Now that’s a big question! Perhaps that I should have bought Netflix shares and enjoyed over a 12,000% return! On the work front, understanding what clients need from their advisers. Advice which is technically sound but does not have regard to the commercial factors affecting the business is of little value. It is critical therefore to understand as much as possible about your client’s business, and as quickly as possible. Do your research, do not be afraid to ask questions, and ask for feedback on whether anything could have been done better. In my experience, this is appreciated by clients.
I would add to that the importance of investing time in building a professional network and developing your personal profile. As an adviser, you do not want to be the best kept secret!
Has a recent change in HMRC practice affected your work?
Although ADR will not be suitable for all tax disputes, it is nevertheless an important dispute resolution tool: whether for the purposes of trying to resolve the dispute without the need for a tax tribunal hearing or, where that is not possible, to at least narrow the issues in dispute with HMRC ahead of the hearing.
In 2020, the FTT Chamber president issued a practice statement on ADR which was widely welcomed for its endorsement of ADR and clarification of the procedure. However, HMRC’s new ADR internal guidance published earlier this year has the potential to be a retrograde step in its broader use.
An essential feature of mediation is that the communications involved are confidential and on a without prejudice basis, which encourages the parties to speak openly and frankly. However, HMRC’s recent guidance notes on ADR includes the statement that a ‘tax fact’ provided during a mediation is not covered by the without prejudice rule.
The carve out significantly cuts across one of the key pillars of a mediation. Additionally, the lack of clarity as to what constitutes a ‘tax fact’ – defined only as ‘a fact which has legal and technical implications for a taxpayer’s liability’ – risks further undermining the benefits that an ADR process can bring to a dispute.
What development should we look out for later this year?
At some point, we can expect the outcome of the government’s consultation on the VAT treatment of fund management. There has been a mixed reaction to HMRC’s new principles-based proposal for what would constitute a ‘special investment fund’ and disappointment at the limited scope of the consultation, failing to address some important issues, such as the definition of ‘management’.
Following Brexit, it’s crucial that the government gets the strategy in respect of this important industry right and does not detract from the UK’s attractiveness as a destination for fund management. However, I shall remain optimistic that the frustratingly long period of waiting will be concluded with a positive outcome for the industry.
You might not know this about me but...
I had ambitions of becoming a racing driver. My dad built a petrol go-kart for me and my siblings and I would spend hours perfecting my skills. However, my enthusiasm was dampened somewhat following two incidents. First, when I lost a significant section of hair when it caught around the wheel; and, shortly thereafter, when an equally enthusiastic neighbour took the wheel and proceeded to run me over. The kart was decommissioned and with it my dreams of racing glory!
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