The dangers for a professional firm which upsets the taxman have been made clear by HM Revenue and Customs’ recent actions.
Upset with a Kent accounting firm, whom they believe is guilty of wrongdoing in relation to their cleints' tax affairs,. HMRC have banned the firm from submitting tax returns on behalf of its clients.
There has as yet been no case brought against the firm. However, HMRC had already obtained a warrant to search the firm’s premises and had taken the unprecedented step of writing to all the firm’s clients to let them know what was happening.
The firm made an application for judicial review of HMRC’s actions and was successful. However, the case shows that HMRC has considerable powers and is increasingly willing to use them.