Working with other advisers to ensure the best outcomes
Another accounting company contacted us about one of their clients because HMRC had opened numerous enquiries into his companies and personal affairs with no sign of resolution in sight.
We reviewed the background and noted there were a number of transactions which were marked in the accounts as consultancy fees, whereas in reality the payments were received by the director into his personal accounts.
We recommended our mutual client should make a request to participate in the Contractual Disclosure Facility in order to secure immunity from prosecution. We navigated our mutual client through the process, working closely with the referring accountant to establish the correct amount of tax that ought to have been paid. It was important for our client to resolve all historic issues in respect of multiple companies and personal tax issues as part of the process, which was achieved by way of contract settlement. We also negotiated the lowest possible penalty, suspension of penalties for the careless understatements and a time to pay arrangement.
Bespoke Solutions
An individual who had deliberately failed to declare consultancy fees as well as operate PAYE on his housekeeper’s salary sought Crowe’s advice.
Our client was an accountant, hence rightfully concerned that HMRC might seek to prosecute him for tax fraud. We recommended he make a request to participate in the Contractual Disclosure Facility in order to secure immunity from prosecution.
Given the specific nature of the issues, Crowe managed to agree with HMRC that it would not be necessary to complete a full blown CDF report, which significantly reduced the amount of time and cost involved in reaching settlement with HMRC.
A professional practice, who having experienced significant growth in its business, sought a more efficient way of working.
The firms work is complicated but also process driven.
A review was undertaken of the available ‘off the shelf’ solutions, and it became quickly apparent that the software packages in the market did have the required capability to create personalised working practices in an electronic environment that encompassed all of the requisite enhancements.
The firm decided to undertake a large scale, complicated internal project to develop software to create electronic workflows, replacing the previously largely paper based system.
The project was costly as it required the firm to invest in a significant number of man-hours. With limited funding available to the firm, they sought access to R&D tax benefits to subsidise the cost of the project which was conducted via a subsidiary company and therefore within the R&D tax relief regime.
We identified a number of aspects of the development project on which R&D tax benefits could be claimed and we then helped them prepare their R&D claim.
To date the firm has received £187,000 of R&D tax credits from HMRC, with an estimated additional £60,000 due in respect of the final phase of the project.
Professional practice receives £187,000 of R&D tax credits from HMRC from investing in process efficiencies
Case Study
A few typical instances are shown in our case studies below. For a more thorough discussion of your circumstances, please
contact us.