On 31 May 2018 the Law Society published interim guidance on the treatment of the Brabners First Tier Tribunal case on the VAT treatment of electronic property searches.
The interim Law Society guidance is in line with that already produced in our guidance notes and blogs last updated in our Q and A blog of 11 October 2017. We advise that all the guidance in our blogs still applies:
As a reminder:
Our success in defending a Law Firm as a result of the Brabner’s case
We are now starting to see HMRC actively targeting this area on inspections. Only last week we were able to intervene at an early stage in a particular case by providing sound advice to a law firm that has resulted in a positive outcome.
HMRC raised an assessment to the law firm for over £30,000 in respect of their view of the impact of the Brabner’s case on the particular firm. Our check of the basis of the assessment revealed that there was a major flaw in HMRC’s calculation of the assessment.
The letter from HMRC confirming the assessment had sought agreement to their figures but before agreeing to anything the firm correctly sought our advice. Although not finalised yet we expect to have the assessment reduced by about half.
A great outcome for the firm, but an indication of risk to others.
If you feel you need some assistance in this area and especially in the event of a VAT inspection, please get in touch at an early stageEmail Stephen
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