Strategic VAT defence saves client over half a million pounds

Our client received a substantial VAT assessment that threatened their financial stability and reputation. The case centred on HMRC’s challenge to the VAT treatment of their financial intermediary services. With the stakes high, a precise and evidence-based approach was essential.

In March 2025, our London-based financial services client was issued a £563,033 VAT assessment after HMRC questioned the VAT treatment applied to their intermediary activities.

HMRC disputed the client’s position under the VAT Act 1994 (Schedule 9, Group 5), creating the risk of a significant tax liability unless the client could clearly demonstrate their role as a financial intermediary.

We carried out a detailed technical review of the legislation, assembled strong evidence supporting the client’s intermediary function, and prepared a thorough legal challenge. After our submission in June 2025, HMRC completed a full reassessment and withdrew the entire £563,033 liability.

Key takeaways

• The client’s VAT position was fully validated through clear, structured evidence
• A focused technical defence can overturn even high-value HMRC assessments
• The successful challenge removed the full £563,033 risk

If HMRC is reviewing your VAT position, or you want reassurance on the treatment of your supplies, we can provide an initial assessment to identify potential risks and outline practical next steps. Get in touch for a confidential discussion about your situation.