Always Worth Arguing With HMRC
In a recent case that went before the First Tier Tribunal, we heard the story of a taxpayer who had wanted to conduct her trade through a limited company but had forgotten to set the company up before her first sale.
As the company did not exist, HMRC said that it could not be said to have made that sale and so sought to tax the individual.
Now, the lower rate of corporate taxation was worth a lot to this taxpayer on this sale, and so she argued. She argued well and she won.
We learn two things from this case. Firstly, if you want a company, then make sure you set it up. Secondly, it’s always worth arguing cos you might find that you argue better than the Revenue.