December 15, 2004

HM Customs and Revenue (VAT)

HM Customs & Excise, notice to require security deposits, my appeal

Dear XXX, further to our face-to-face discussions; the arguments and evidence put forward plus a VAT audit I find it difficult for your offices to uphold your estimates for a security deposit for the following reasons: -

  • At our first meeting, you asserted that calculations were based upon a business model which was assumed similar this company's activities. However, it was illustrated in some detail that your assertions were flawed in respect of our VAT Business Clarification code and by our shift from Retailer to a self billed commission agent. As such your calculations are considered totally unreasonable.

  • Already I have questioned the validity of basing any request for Security Deposit on the premise of family relationships. I would assert that this is the second occasion that as a director my businesses have been singled out for security deposits and in each instance I would assert my fathers trading activities have cast doubt on my integrity as a financial manager.

  • During our meeting I questioned the validity of hypothesising that a trading address bares any relevance to VAT non-compliance.

  • Without financial data to substantiate, you have assumed non-compliance and risk where no evidence existed to support such a claim.

  • It is assumed that a recent VAT audit and the conclusions thereafter have influenced your decision. Be advised that an appeal has been instigated whereby this company disputes the greater majority of adjustments levied.

  • Represented at the creditors meeting for XXX you must be fully aware also that apart from question of financial management reporting the conduct of the Director was not brought into question. I affirm that outside influences namely a 70k demand for security from our card service provider eventually brought about the downfall of a well managed and reasonably prosperous business.

    Now being in possession of cash-flow and profit/loss forecasts you must realise that the sums put forward represent over one third of our projected NET Profit. You must now also appreciate that the Director is without personal resource and corporate or business borrowing is highly unlikely.

    This business is still in its infancy and as such cannot support those figures tendered; indeed demands of such magnitude very much represents the demise of this company. I will of course appeal to tribunal if agreement cannot be reached, but first I would like you to consider what is to us a more manageable sum of 3k, paid over three monthly instalments.

    I look forward to your favourable reply.


    July 27, 2005

    HM Customs and Revenue (VAT)

    HM Customs & Excise, notice to require security deposits, my appeal (2)

    I write in response to your letter dated 25-JULY and refer to the tribunal hearing of 08-JUNE.

    During the appeal you were asked whether you considered that the imposition of this security deposit would place this company into an insolvent position. In hindsight perhaps it should have asserted that based upon prejudices you had set about to force this company's closure.

    As a consequence of your actions fifteen local jobs have been lost; very few of these people have found employment elsewhere.

    An absence of conscious is perhaps a prerequisite of an Officer of Revenue & Customs but I do sincerely hope that within the framework of Customs and Revenue their does exist an avenue that will make you answerable for such appalling professional negligence.

    Your recent letter does only further highlight your continued attempts to pursue the Director and to remove from him his livelihood. Needless to say, I have learnt a great deal about you these past nine months and so I have no intentions of allowing my business activities to fall within your sphere of influence so please kindly desist from harassing me and my wife any further.

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