An interview with Jacqui

What do you do, Jacqui?

In short, I help people solve tax problems.  People spend their lives working, for themselves, for their business or for someone else.  Tax is incidental to their dreams of creating and maintaining successful businesses, and sometimes it can go a bit wrong.  Some people deliberately underpay tax for any number of reasons, some people make mistakes either through being careless or despite taking reasonable care.  HMRC just wants its money, and possibly a penalty too.  I don’t judge anybody, no matter what has happened.  I take the strain and stress out of tax investigations by resolving HMRC’s concerns, negotiating the best deal for the client, keeping them out of jail and letting them focus on what they do best - running their business.

How did you get into this area of work?

I started life as a clerical assistant in HMRC, rising through the ranks.  I did debt collection, I was a tax inspector and ultimately worked at what is now called the Fraud Investigation Service. I dealt with cases of fraud, and even raided people’s houses and offices, both in the UK and abroad.  Ultimately I was headhunted, and whilst I enjoyed my 17 years at HMRC, its far more satisfying being nice to people, supporting them through their struggles and getting great results for them.  I’ve been serving clients this side of the fence since 2001, and I just love helping them.

What does your working week look like, Jacqui?

Every week is different.  One of the few consistencies is that I turn up for work!  One day I might be dealing with a Code of Practice 9 case - this is where HMRC think there’s fraud but won’t prosecute if the client tells the truth - the next I might be helping someone make an arrangement to pay a tax bill that can’t be paid immediately.  Or someone might have discovered a mistake before HMRC has approached them, so I will help them make a voluntary disclosure - always cheaper than waiting for HMRC to find out!  The consistency in my work is no matter whether its a company, partnership, individual or trust, there’s always a person behind it that has to deal with matters.  That person is the most important aspect of my week, and I do my best to guide them through what can be an horrendous process if not dealt with by a specialist.

You mentioned Code of Practice 9 - Is that different to other investigations?

Code of Practice 9, or CoP9, is one of the most serious investigations there is.  HMRC invite a person to admit ‘bringing about a loss of tax deliberately’ (so fraud) and say they won’t prosecute if the client is honest about it.  However, all investigations and enquiries are important since they can all escalate to CoP9, or worse, if not dealt with correctly.   

In Cop9 cases, and in other cases such as proceeds of crime, straight forward enquiries, or even compliance checks, quite often the Inspector has preconceived ideas and is convinced that there is money owing. HMRC says it doesn’t prejudge matters, but in reality it does - and it’s perhaps understandable since most cases are started because risks have been identified and financial outcomes are frequent.  But there are also so many cases where the risk identified has been incorrectly assessed; HMRC has some information but not all of it and can therefore add 2 and 2 and come up with 19.5.  

There are lots of rules and regulations about what HMRC is entitled to.  It’s important that the right information is given to HMRC at the right time.  I always aim to co-operate with HMRC to the extent the law allows and to get matters resolved quickly for the client, but I’ve seen many cases where blind co-operation has back-fired and made the situation worse.  In a recent case, an accountant inexperienced in CoP9 had been acting.  In an effort to meet HMRC’s perceived expectations they persuaded the client to admit to bringing about a loss of tax through deliberate behaviour.  The initial disclosure was too detailed and in fact wrong - fraud had been admitted in a number of areas including some where no error existed!  As a consequence the client was faced with penalties of a minimum of 35% of the tax and being published on HMRC’s website.  The advice the client had been given was wrong, and the process not explained. It is almost impossible to deny fraudulent behaviour when it has already been admitted.  Luckily, we managed to prevent the publishing (which would have meant the closure of a good business and unemployability) and HMRC accepted that some issues were not deliberate.  Whilst the client was over the moon with me, it could have been so much better if she’d had the right advice at the right time. 

HMRC is a large authority with a fierce reputation, and it takes someone specialist and experienced to know when and how to say ‘stop, what you’re doing is wrong.’

Do you have a particular way of approaching matters? Is there a style that you would say is unique to you?

Well, one thing is that I don’t judge people.  Some tax advisers will look at a client that has underpaid tax as though they are the devil incarnate, and will lecture them as to what they should have done or not done.  To me, it really doesn’t matter what has gone wrong or why, it is just a matter of putting it right in the most commercial way.  I think my clients would say I am trustworthy and honest - I don’t sugar coat things, I explain processes and what might happen, and then try to offer a solution.   

Most people get stressed by tax investigations because they don’t know what is going to happen. It’s fear of the unknown and some advisers rely a little on this to show their value.  I don’t. I try to take that fear away - most people can handle the outcome if they know what it might be and can plan for it. 

My clients know that I do the best I can, and I won’t shy away from a necessary fight with HMRC and I don’t give up if I’m right.  One client came to me with a problem - HMRC said he had deliberately underpaid his tax.  He denied doing anything deliberate but said he would pay the tax but not the penalty.   Two sets of lawyers had worked on the case before me without success. I told the client I didn’t think the tax was even due, something that hadn’t been picked up before  It took two and a half years of constant battles, but we won.  It was such an amazing feeling when the client sent me a framed copy of his cheque from HMRC with the note ‘You’re a star!’.  The cheque covered the majority of his professional fees!  

Tax is not the be all and end all of a person.  They have businesses and personal lives too, so I try to make sure that whatever path we follow, or whatever advice I give, that the journey or the outcome positively affects them.  I stay in contact with clients, I refer work to them, or share things I find that might help them.  I’m always on the end of the phone if they need anything, even if its just a chat.

Do you think the Covid Pandemic will affect tax investigations?

It’s thought that Benjamin Franklin first said “the two certainties in life are death and taxes.”  Not much has changed since 1789, and I think that if tax still exists after all this time, the Pandemic is not going to stop it!

Investigations were paused for a little bit, while a significant portion of the workforce manned the helplines.  But with all the money that has been given to support people, the Government is going to want it back some how.  Even before the pandemic, more financial resources were being given to HMRC, so we expect to see a lot more investigations next year, especially as there have been mistakes and frauds on the furlough scheme.

What do you do when you are not working?

I’m learning French, I just finished writing a novel and hope to get that published, I like watching the Formula 1 and being with my family.  I love playing golf too - but there just aren’t enough hours in the week!