Litigation Support

There are several good reasons to engage a VAT litigation adviser.

Get Advice Based on Current Legislation and Regulation

VAT litigation is fact-sensitive and highly technical because the rules around the complex tax are constantly developing. Getting specialist advice will ensure that you have access to the most up-to-date information about legislation and industry rules.

External Expertise with Extensive HMRC Experience

Our advisers hold specialist VAT dispute expertise so they can provide an independent assessment of your litigation prospects. Many of them have worked within HMRC so they are familiar with the authority’s methods and lines of thought.

Boost Internal Teams with Resource and Knowledge

By bringing in external expertise to your VAT assessment challenge, you can minimise disruption to stretched internal teams.

Payment Not Due Until Your Case Succeeds

When you engage The Proactive Consultancy Group, you will only pay if your case is successful.

Disputes can arise in relation to all areas of VAT, but in the corporate environment, some of the most common issues centre on:

• VAT exemption and partial exemption
• Input tax recovery
• Transactions involving property
• Option to tax disputes
• International VAT arrangements
• Financial services VAT treatment
• Healthcare VAT exemptions
• Insurance-related VAT matters
• VAT grouping arrangements

We also see disputes relating to how VAT interacts with complex transactions and supply chain structures.

Our VAT litigation service provides specialist support throughout the dispute lifecycle. Our expert VAT litigation team can help organisations:

• Assess litigation prospects
• Understand potential financial exposure
• Develop technical arguments
• Prepare supporting evidence
• Manage tribunal proceedings

Working With Finance Teams and Tax Departments to Maximise the Chances of Success

With our support, you will maximise the likelihood of a successful outcome in a VAT litigation.

We work alongside finance teams, tax departments, legal advisers and senior stakeholders to ensure that your VAT dispute is managed effectively and commercially.

When you engage us for VAT litigation support services, we will first assess your dispute. Then we will validate your case by carrying out a detailed technical analysis. At this stage, you will decide whether to engage us on a no-upfront-cost basis. We will then deliver our dispute management services, guiding your organisation through litigation from start to finish.

Assessment: Initial Review of the VAT Dispute

In the first instance, our VAT litigation team will review your dispute with HMRC. This will take in HMRC’s assessment; any correspondence and technical arguments; financial exposure, tribunal deadlines; available evidence; potential grounds of challenge.

We are aware that deadlines can be tight for VAT appeals, so we have honed our processes to ensure we can gain a rapid understanding of the risks and opportunities before either of us commit significant resources.

Our assessment process is designed to provide a high-level view of whether it is worth pursuing the dispute.

Case Validation: Detailed Technical Analysis

If we think we can support you in successful litigation, we will comprehensively assess the case. Our VAT case assessment typically involves:

• Legislative review
• Analysis of case law
• Assessment of commercial arrangements
• Review of contracts and supporting documentation
• Technical evaluation of HMRC's position
• Assessment of likely tribunal arguments

As we carry out our assessment, we continuously balance the probability of success with the recovery value, litigation risks and commercial implications.

At the end of our case validation, we will be in a position to give you a clear recommendation on whether to proceed with litigation.

Engagement: Access to Specialist Expertise Without Initial Financial Commitment

For cases that have a strong chance of success, we work on a no-upfront-cost basis, using a success-based fee structure.

At this stage, we will clarify litigation objectives to ensure we are risk-aligned.

Then we will agree the scope of services and project governance and reporting arrangements for our VAT litigation services. This model ensures transparency on both sides.

Delivery: Managing the Litigation Process

Our VAT litigation specialists will coordinate the challenge on your behalf. Working closely with your tax and finance teams and your legal counsel, we will:

• Develop a litigation strategy
• Prepare technical submissions.
• Build evidential support
• Prepare witness statements
• Coordinate expert evidence
• Support tribunal preparation

We will also respond to HMRC’s arguments and manage negotiations and settlement discussions.

Fee Only on Success

We work on a fee-on-success basis to protect your business’s cash flow. Our fee-on-success model gives access to professional services with minimal risk to your organisation.

Why Fee Only on Success?

We prefer to work under a fee-on-success model because it keeps our interests aligned. We will only take on cases we are confident will succeed.

The Proactive Consultancy Group’s professional litigation support services are appropriate for high-value companies confronted by a significant VAT assessment from HMRC.

This service is best suited to:

• Businesses considering litigation before the tax tribunal
• Organisations that have reason to believe that HMRC has incorrectly applied VAT legislation
• Businesses facing substantial financial exposure
• Organisations with complex technical VAT issues requiring specialist expertise
• Companies that have exhausted informal discussions with HMRC and require a formal challenge strategy

We work closely with finance directors, CFOs and heads of tax who are seeking an independent review of their VAT assessment.