Jonathan Benjamin Schofield, 32, a boss of a security company, has been jailed for three years after being involved in tax fraud of almost £500,000. He cheated the HMRC by underpaying VAT, income tax and national insurance. During the tax investigation by HMRC, Mr, Schofield failed to attend several meetings and did not cooperate in any way. On the contrary he continued enjoying his lavish lifestyle which he earned through tax evasion. A confiscation order has been made to recover the tax he stole and will include the sale of his assets/ properties. Read more..
Author Archives: Jamal Khan
Mechanic jailed after tax investigation for £208k tax fraud
Ian Wilson, 61, was sentenced in January 2018 to eighteen months in prison for tax evasion including underpaying his tax and national insurance by understating his actual income. Cash of £110,000 was discovered at his home when HMRC raided him. Mr. Wilson has now been ordered to pay up the tax evaded of £208,000 or face additional time in prison. Mr. Wilson now risks his house being sold to pay for the tax lost. Read more..
Serious tax investigation closed
This case was referred to us from another accounting firm in London. The client had been under enquiry for some time for undeclared income relating to the main business. HMRC’s focus was that the business had undeclared sales and that the director had been pocketing the cash sales to fund his living costs. Our tax investigation specialists considered the case in depth and how the business sales had been recorded and declared in the VAT and corporation tax returns. We also considered how the director’s lifestyle had changed over the years which showed that in reality our client’s financial position had deteriorated as the business was struggling. This was proven by way of a capital statement presented to HMRC. After HMRC concluded the enquiry for the business where some additions were made to the sales, HMRC accepted our case that there were no changes required to the director’s self assessment tax returns. The director had initially been advised that there would be a significant amount of tax and penalties payable and that he may be made bankrupt. However, after our successful negotiations, the enquiry was closed with no tax to pay. Our team at Churchill Tax Advisers is grateful to the HMRC officers involved in the case for understanding and accepting our client’s deteriorating financial position.
Our analysis: This case was referred to us after the client had been badly let down by their previous accountant. The enquiry was connected with another enquiry into the director’s limited company where HMRC suspected undeclared sales which our client blamed on the previous accountant. In our experience people get what they pay for in terms of accounting services and the quality of work done. Each time we receive a tax investigation case from another accountant, we notice a common trend of trying to pay the lowest possible accountancy fee and hence receive bad advice before they are investigated by HMRC. After the investigation, most businesses pay significantly more in fees, taxes, penalties and possible prosecution (which taxpayers normally attempt to blamed on their former accountants but it does not help their case).