Francis Kendall comments on the news that former England footballer Emile Heskey has been ordered to pay almost £200,000 in legal fees to HMRC
Francis examines whether the legal fees were proportionate to the amount of tax at stake, drawing on his experience in costs disputes with HMRC.
Francis’ comments were featured in Business Matters, 4 June 2024, TheBusinessDesk, 5 June 2024, and Accountancy Daily, 5 June 2024.
“Given the amount of tax at stake, it is no surprise that the fees were deemed ‘proportionate’.
“In my experience, the fees incurred by HMRC are near impossible to dispute. The department has an army of in-house lawyers, who charge hourly rates that are well below market rate, or the guideline figures usually allowed on assessment. Counsel also tend to work on reduced fees for HMRC.
“It is therefore likely that the legal spend, if in the open market, could have been significantly higher than the sum recovered. Mr Heskey’s own costs would undoubtedly be an interesting comparator.”
