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Case Studies

Case study of a dental practice, which found itself severely in arrears with its tax payments and was threatened with closure by the Inland Revenue.

For a variety of reasons, the main one being neglect by his accountant, the correct tax payments were not being made and more often than not, no tax payments at all.

The Revenues attitude became more and more threatening and the papers were handed over to their specialist collection unit, whose tactics can be extreme.

The dentist basically had a good business and the chance to go forward to genuine profitability. He had a workforce of several secretaries, assistants and nurses who depended upon him and he just needed time to clear the tax arrears.

AGS were recommended to the dentist by one of his patients and the trouble-shooter, Malcolm Preece, went to see him. On leafing through the piles of demands and correspondence, it became clear that the Revenue must be poised to take some drastic action.

It came swiftly, out of the blue.

A bailiff and a tax collection officer turned up at the surgery demanding payment in full.

The dentist passed the telephone to Malcolm, who was able to gain a little time.

Unfortunately, everyone knew it would only be a matter of time before they returned and this they did – again threatening the future of the entire business.

Malcolm had been involved in detailed discussions with the dentist and it became clear that the only way out of this temporary difficulty was for him to borrow a very large sum of money off his father in law (who luckily was able and willing to lend it). The problem was that the Revenue, whose attitude by now was extremely hostile, were at the door again to take his possessions, thereby putting him out of business, his staff out of work and denying a large number of people their dental services.

After heated further exchanges -including a visit by Malcolm and the dentist to the tax collection office, and several telephone conversations to the regional office – the dentist was finally given time to drive to Bristol, where his father in law lived, to collect the cheque to help secure his future.

The Revenue was paid off and the dental practice has gone from strength to strength. AGS complete his accounts etc. as early as possible and keep an eye on his tax payment position to ensure that he does not slip again.

He came within an inch of being bankrupted by the Revenue and it was only Malcolm’s knowledge of the Revenue and its procedures, and his dogged determination to win the day that enabled the dentist to continue in business.

The real secret, of course, is not to fall behind with your tax payments and, if you do, to make early contact with the taxman to negotiate some form of arrangement.

Malcolm is also able to handle this negotiation process to the client’s advantage. To ignore the Inland Revenue is not an option.

Should you require further information, please contact us on 01384 217222.