BACK

29 Jan 2025

Being investigated by HMRC for tax fraud is a serious matter. Every year, thousands of tax fraud cases are opened up in the UK. Those who are accused of tax fraud often end up facing severe penalties. However, with the right legal support, you can protect yourself from these allegations.

At ABV Solicitors, we can make the prospect of tax evasion allegations less daunting by dedicating a team of experts to your case. We’ll navigate the complexities of tax law for you and help you build a defence so that you receive a fair hearing. This post explores the topic of HMRC fraud and tax fraud defence in greater detail.

What types of tax fraud are there?

There are several different categories of tax fraud. Some of the most common types of tax evasion allegations include:

Income tax evasion

This is when someone is accused of failing to report income or deliberately underreports earnings to reduce tax liabilities. It can include failure to declare cash-in-hand payments or undeclared income in hidden accounts. 

VAT fraud

A business may be accused of Value Added Tax (VAT) fraud if there are signs of VAT returns being manipulated. This could include failing to account for VAT on certain sales or falsely claiming VAT refunds.

Corporation tax fraud

Many companies are accused of committing corporation tax fraud by submitting false figures or information. This includes underrepresenting income or inflating expenses in order to pay less tax.

Tax credit fraud

Someone may be accused of tax credit fraud if it is believed they have falsely claimed certain tax credits or allowances. This could include working tax credits, child tax credits, jobseeker’s allowance or housing benefits. 

Offshore tax evasion

You could also be accused of tax evasion if it is believed that you are hiding money in foreign accounts or investments in order to avoid paying UK taxes. This is known as offshore tax evasion. 

What are the penalties for tax fraud?

The penalties for tax fraud vary depending on the nature and extent of the fraud. Deliberate attempts to avoid paying huge amounts of tax are likely to come with the most severe penalties. Some of the potential penalties you could face if you are accused tax evasion include:

Restitution

This is when offenders are required to pay back the amount of tax owed. This typically includes added interest fees. A payment plan may be set up which you must agree to pay if you don’t want to face additional penalties.

Additional fines

Some offenders may also be charged additional fines which could be two to three times the amount of the tax due. Such fines may have to be paid by a certain deadline or in installments. 

Imprisonment

In serious cases, an offender may face criminal charges that could result in imprisonment. This could include jail time of a few months to a few years depending on the severity of the case.

It is worth noting that along with these penalties, tax evasion allegations can often cause a large amount of reputational damage. 

Why should you hire tax fraud solicitors?

It is highly advised that you hire tax fraud solicitors if you are accused of tax evasion allegations. Trying to form a defence without a thorough understanding of tax law could be difficult and a court may not take your case seriously.

Tax fraud solicitors are highly trained to deal with tax fraud cases and have studied tax regulations and HMRC protocol in detail. They will be able to help you build a tailored defence strategy and will be able to negotiate penalty terms with HMRC on your behalf. Having dealt with many previous cases before, they will know exactly what to say and what not to say to help sway the case in your favour. 

It is vital to act quickly when seeking out legal support. This will give solicitors more time to build a strong defence. 

What does HMRC tax fraud defence involve?

There are multiple stages to building a defence against tax fraud allegations. To begin with, you will book a consultation with a solicitor, who will be able to go over the details of the case with you. This can help you to understand exactly what you are being accused of.

You will then need to gather evidence to support your case, which could include financial records and any correspondences you have had with HMRC. There may also be witness statements that you can gather regarding the nature of payments or expenses. 

A team of solicitors will then begin building a defence strategy based on the evidence provided. This may include challenging any accusations put forward by HMRC and proving that you have acted in good faith in order to reduce or prevent any penalties. 

If your case is brought to court, solicitors will be able to help represent you in the courtroom. This may include helping to win over a judge or jury if you are potentially facing jail time.

Why should you work with us?

At ABV Solicitors, we have a highly qualified team who are experts in tax law. We have built up a reputation for being one of the top legal firms when it comes to dealing UK fraud cases and we have represented clients facing some of the most serious and complex tax fraud allegations.

You can therefore trust us to help you build a strong defence. We understand that such cases can be incredibly stressful, and we aim to take this stress away by handling your case with the utmost thoroughness and care. We’ll help answer any questions you have and help you prepare for the hearing (if the case is likely to go to court). We’ll also maintain regular communication throughout the case and make sure any documents are submitted in good time.

Get in touch with us today by emailing us, calling us or filling in our online form. We’ll get back to you as soon as possible and we can arrange a consultation to further discuss your case.