HMRC has written to former clients of Christopher Lunn and Co threatening “criminal investigations” and raising settlements under section 29 of the Taxes Management Act 1970 if they do not provide a full disclosure.

http://www.accountingweb.co.uk/anyanswers/question/operation-edgewood-christopher-lunn-game-cat-mouse

I am one of the unfortunate Sole Traders that is currently wrapped in the investigation having employed CLAC in 2006/7/8. Following an extremely lengthy process HMRC Local Compliance for Small & Medium Enterprise based in Bootle in Liverpool are now demanding a ‘without prejudice’ £4745.64 in back payment from their projected short coming for those three years when I began trading.

Is there any advice out there, from what I guess would be 3000+ ex-clients on how they dealt with what it seems bully-boy tactics adapted by HMRC?

Specialist tax advice is expensive. It is also very specialised and getting  independent advice on this is rare. Any action groups whoa re also out there, set-up to collectively look into the bully-boy tactics I feel HMRC are using, then that would also be good to know.

If anyone feels they could help on a more professional level and would prefer to offer paid advice, I’m sure a action group who would be eagerly chomping at the bit, have no issues grouping together and contributing to that.

I spent many months researching and reading as much as I could. I discovered the HMRC have mini-teams, tasked with retrieving as much money as possible, much like private hire bailiffs. It was quoted that these individuals spend up to 2-3 years to retrieve under £10K per claim. When exposed, they had little answer to the inability to claim £Billions from the Googles / PWCs / etc but hounded SME like ourselves for a fraction of that amount.

I am currently a full time employee and pay £1000s income tax on PAYE, so you can understand my shock, and utter disgust at again being forced to pay more to these blood suckers.

They had no proof, everything was circumstantial and hung on something I said some two years prior – when asked about accountancy expenses I replied “I didn’t use any of those” So they took this as fictitious additions on my accounts. My advice is to say nothing. Plead ignorance. After all, you paid a professional to do their job – much like you would a profession electrician.

How possibly would you be able, or know to double-check your electrician had wired your house correctly? Its the same situation here.

I was so disgusted I did make counter enquiries, other solicitors almost guaranteed they would be able to fight and win my case but there fees were approaching £3000. Which, in my case, was just over half what they were demanding. Coincidence or otherwise, I couldn’t chance it.

My advice, is too not be bullied by their deadlines, you are entitled to seek a second opinion and have their calculations scrutinised. 

I await your advice and feedback below with anticipation.