Tax Disputes: Meet our expert Joe Burns

Joe Burns is a Tax Disputes Senior Manager at Kreston Reeves. Prior to joining private practice, he worked in HMRC’s Fraud Investigation Service for several years where he saw many examples of the lengths people go to, to avoid paying the right amount of tax.

Joe has a wealth of experience working both sides of a tax investigation and uses his knowledge to resolve tax disputes quickly and efficiently whilst ensuring clients don’t pay unnecessary tax, interest or penalties. Joe explains: “I don’t think anyone grows up wanting to be a tax inspector, but I consider myself incredibly lucky to have stumbled into this career. I have worked with and against some brilliant people. No two days are ever the same, but the one constant is the feeling of immense satisfaction when you obtain a successful resolution for a client.”  

In Joe’s opinion, the key to resolving HMRC disputes is to fully understand HMRC’s concerns. From his time working for HMRC, Joe is better placed than most to identify what HMRC’s ‘risks’ are, and how to address them. He recognises that the technical merits of an argument are important, but it is just as important to present those arguments in a manner that the inspector will respond best to.  

“There isn’t always consistency in how HMRC conducts an investigation or reaches a decision. The dispute resolution team at Kreston Reeves provide bespoke strategies for our clients, depending not only on the circumstances of their case, but also how HMRC is operating. While we will always work with HMRC to resolve a case, we have no hesitation in telling HMRC when it is wrong and defending our clients robustly.”  

“The biggest mistake I see made by those who aren’t tax dispute specialists is providing HMRC with too much information. HMRC officers can and do make mistakes, requesting information they’re not entitled to. Supplying unnecessary information often leads to investigations taking longer to conclude (as HMRC has more material to consider), and often leads to HMRC identifying further ‘risks’. We operate a policy of full disclosure but will only ever provide HMRC with information and documents that it is entitled to. Working this way enables us to resolve tax disputes quickly and, therefore, cost effectively.” 

Joe is certain that an increase in the number of HMRC compliance checks is inevitable. “The budget confirmed that HMRC would be recruiting 5000 new HMRC officers and clamping down on suspected tax fraud. It will take some time to train these HMRC officers and businesses may not feel the effect of the changes brought about in the budget for several months. The government is investing heavily in HMRC and will expect a return on that investment before too long.”  

In the shorter term, I suspect HMRC will maintain a high level of focus on R&D claims. Over the past 18 months, it has identified vast numbers of inaccurate R&D claims and I suspect this may lead HMRC to test the accuracy of other claims being submitted by businesses. I can see Capital Allowances claims attracting more attention from HMRC following the success of its R&D campaign.” 

“More generally, HMRC has access to a lot more information than people think and uses this information to risk assess potential enquiries. If something doesn’t look right, HMRC’s risk assessment team will pass the case on to a compliance team for them to decide whether they want to open an investigation.” 

Unlike many tax compliance roles, working in tax disputes mean there aren’t any traditionally busy or quiet periods. HMRC opens enquiries all year round and once opened, will expect a response every month until it has closed. Therefore, managing HMRC deadlines and workflow is a key requirement. Dealing with HMRC often involves lots of letter writing to address HMRC’s risks, justifying the historic position wherever possible and where it isn’t, mitigating the client’s exposure. Tax is rarely simple. Joe’s job is to simplify the complex, presenting the facts clearly with a view to resolving the dispute at the earliest opportunity, while ensuring the client does not pay any tax interest or penalties that they are not obliged to pay.  

When not dealing with HMRC investigations or his young family, Joe is an avid horse racing fan. “I don’t get to the races anywhere near as often as I would like. For me, watching high level sport with time in between races to catch up with friends over a few beers is unbeatable. Sadly, it transpires most of the horses I back are very, very beatable!”

If you would like any further information related to the topics covered in this article, visit our specialist Tax Dispute Resolution page, alternatively, if you would like tailored advice, please do get in contact