Fraud Investigation and Kittel Claims
At Chartergates, we understand the complexities and challenges that businesses face in dealing with HMRC’s Fraud Investigation Services (FIS) team. Our dedicated team is well- versed in providing comprehensive support to clients involved in labour supply chains, a sector classified as ‘high risk’ for VAT fraud.
Our Fraud Investigation and Kittel Claims Services
FIS Enquiries and Proactive Measures:
HMRC’s FIS team operates with the dual objective of preventing tax fraud and addressing it when detected. Labour supply chains, due to their inherent risk, often become subject to FIS enquiries. Even in the absence of suspicion, the FIS team may initiate investigations with taxpayers involved in making or receiving supplies of labour.
Navigating Lengthy Enquiries:
FIS enquiries can be intricate, involving the submission of information on a monthly basis for up to eighteen months. Our team at Chartergates is experienced in guiding clients through this process, ensuring compliance and minimising the impact on your business operations. We also facilitate regular meetings with HMRC to address any queries or concerns.
The ‘Kittel’ Principle and Assessments:
An FIS enquiry may lead to an assessment under the ‘Kittel’ principle, referencing the court case Axel Kittel v Belgian State (C-439/04) and Belgian State v Recolta Recycling SPRL (C-440/04). This principle can burden non-fraudulent taxpayers with a VAT recovery bill for transactions carried out by another party within the supply chain. Chartergates has a proven track record of supporting clients in contesting assessments based on the ‘Kittel’ principle, ensuring fair treatment and protecting your financial interests.
Appeals with Tax Tribunal:
Should you receive a Kittel assessment and wish to challenge it, our expert team can represent you in lodging an appeal with the Tax Tribunal. We have successfully advocated for numerous clients, ensuring a robust defence and a fair resolution to their cases.
VAT Registration Re-instatement Assistance:
Chartergates has assisted clients in reinstating their VAT registration when HMRC has misinterpreted information, leading to an unjust removal of the registration. Our team leverages its expertise to rectify such errors, safeguarding your business’s compliance status.
Our Services & How We Provide Them
Our specialist VAT consultancy and representation services can be provided on a fixed-fee basis, an hourly rate, on a retained basis and in some circumstances on a contingency basis. Call us today for a free no obligation consultation with our team about our services which include:
- General VAT advice & drafting
- Fraud Investigation and Kittel Claims
- VAT Health Checks, Training & Seminars
- HMRC & Tribunal Representation
- Labour Supply Due Diligence
- The Domestic Reverse Charge
- The Nursing Agencies Concession
