Blog
Settle Smart series part two: Tax liabilities in relation to settlement monies
Krishna Mahajan
Taking on or being chased by HMRC can be incredibly stressful. Our experts provide practical advice on any dispute with HMRC and have extensive experience supporting, among others, ultra high net worth individuals, corporates charities, and trusts.
No matter the issue at hand, our goal will always be to reach resolution as soon as possible, not least due to the reputational impact and cost saving of avoiding litigation. We can assist clients through Alternative Dispute Resolution to negotiate a settlement with HMRC, particularly when communications have broken down, or there is a misunderstanding of the facts.
However, where litigation is unavoidable, we regularly act on full-on appeals before the Tax tribunals or higher courts.
We are also able to draw on the expertise of our colleagues in our reputation management, dispute resolution, employment, and criminal teams, alongside external advisors, to provide the best possible support throughout.
Our expertise includes:
- VAT disputes including single/multiple supplies, scope of exemptions, and zero-rating. If you are in receipt of an assessments, or have been issued with any penalties, we will help identify the correct steps in order to challenge HMRC where necessary.
- Employment related taxes/HMRC issues
1 .IR35/'off-payroll working rules': Questions relating to a worker’s status are not easy and require a wider understanding of the relevant rules and practical insight as to how HMRC approach them. Working with your in-house HR function and together with our Employment team where necessary, we can support you through an enquiry or dispute.
2. National Minimum Wage disputes: With substantial penalties involved, we can advise on the HMRC’s strict interpretation of the rules, which have recently included advice relating to salary sacrifice schemes, uniform policies, and unpaid working time among others. We can work alongside your HR team to engage in a dialogue with HMRC at early stage before a matter proceeds into something more substantial requiring HMRC to issue/threaten to issue a Notice of Underpayment (which comes which significant penalties and ‘naming and shaming’ considerations).
3. COVID-19 support schemes: As HMRC raise enquiries into Covid-19 related support schemes, a robust and thorough consideration of how your business utilised the scheme in order to defend your position is crucial.
- Residence and domicile enquiries We act for clients at different procedural stages, and have the expertise in providing practical and strategically advice.
- Other tax disputes including income tax and NICs, Corporation tax, Capital Gains Tax, image rights disputes for sportspersons, customs and excise duty appeals, all areas of direct and indirect tax litigation, disclosures and judicial reviews.
- HMRC criminal investigations and fraud Working alongside our top ranked criminal litigation team, we can proactively anticipate issues and put our client in the best possible position. We have experience acting for clients subject to enquiry under HMRC's Code of Practices 8 and 9 (COP8 and COP9), allegations of tax avoidance and tax evasion, as well as other similar offences such as the corporate offence of failure to prevent the facilitation of tax evasion.
Further information
For more details on our tax fraud expertise click here.
What clients and directories have said
Information sharing within the firm is first-rate and allows for different departments to input on matters which require a range of expertise."
The Legal 500, 2025
My biggest impression is that the team is very "Kingsley Napley", in terms that it provides bespoke and tailored professional services that meet each individual client's needs."
The Legal 500, 2025
All the partners are experienced, skilful practitioners, and they are supported by a raft of very able associates."
The Legal 500 2025
Their ability to communicate with clients is seamless, prompt, and consistent."
The Legal 500, 2025
The team is savvy, deeply experienced and highly attentive to the needs of clients."
The Legal 500, 2024
Kingsley Napley’s contentious tax practice is unique in its ability to combine multi-disciplinary civil litigation experience with true top-of the-range criminal lawyers."
The Legal 500, 2024
