"You can't sleep at night": Former clients of Suffolk accountancy firm face huge tax bills
Hundreds of people have been told to pay money back to HMRC after using a service from Stowmarket-based Apostle Accounting
Last updated 10th Jan 2024
Three workers who used a Suffolk accountants to claim back expenses have spoken of the toll taken on their mental health and personal lives as they are told to pay the taxman thousands of pounds.
Speaking exclusively to Greatest Hits Radio the three, who are from different parts of the UK, have been hit with bills of between £4,000 and £22,500 after using a scheme marketed by Apostle Accounting.
The Stowmarket-based company offered a service where customers could get a rebate from HMRC through claiming for work expenses.
Apostle would charge a fee of roughly 20%, plus interest, for its work.
However, hundreds of former Apostle clients have now received letters from HMRC telling them to repay money claimed by the firm.
Figures seen by Greatest Hits Radio show over 730 people have come forward saying they used Apostle's services, with around half receiving demand for repayment.
It's thought hundreds more could be affected.
A regional crime squad called The East Region Special Operations Unit (ERSOU) is now looking into fraud allegations after an investigation was previously launched by Suffolk Police.
Apostle has always denied any wrongdoing and claims problems have arisen because of mistakes at HMRC.
The company says it has not been contacted by police but will cooperate with any investigation.
"You can't sleep at night"
"I went cold, you sit there and you look at it and the blood drains from your face... you don't believe it's true" said Kevin Honey, a worker at the Port of Felixstowe.
He's been forced to pay HMRC around £4,000 after using Apostle's services, which he heard about through colleagues at work.
"We knew it was probably going to come... but to what extent we didn't know"
Speaking from his home in Woodbridge, Kevin told us: "It's affected a lot a things... I've had to cut back and cancel a lot of plans. Holidays have been put on hold."
"We've had to sell things, cancel things... basically rob ourselves of things we were going to do".
Richard Hemming, an NHS worker in Bath, has had to pay HMRC back around £4,100 after claiming expenses through Apostle.
"As soon as I knew there was going to be a problem and I knew I was going to have to repay I emailed Apostle."
"They said 'nothing to do with us', you've got to speak to HMRC."
"Since then I've written to them three times outlining my complaint... I've not had any response."
Lee Osborne, a worker in the food industry in Norfolk, has found himself faced with a much larger bill.
"Roughly, all together, for the time I used Apostle, the damage is £22,500".
"I've never had to seek help or anything like that but since this event... depression, I've had to go to the doctor to get help with that."
"You can't sleep at night because you're laying awake all night thinking 'what's the amount?'"
"I've had to tell my partner about everything and I slept on the couch for about six weeks."
"So if that's the damage that it's done to my household and my relationship... imagine what it's done to the other 730 people."
In a statement, lawyers for Apostle Accounting deny that former customers were unable to see a breakdown of claims made to HMRC on their behalf.
“The allegations, if any, that individuals were not provided with breakdowns as to the expenses is unfounded – Apostle Accounting has breakdowns for each of its former clients, with the individuals fully aware of how such sums were calculated" a spokesperson said.
"All clients received a self-assessment computation for them to check and digitally approve."
“We have also received written confirmation from HMRC that the records they have reviewed were digitally approved by the client.”
In a statement issued via its lawyers Apostle said:
"HMRC has previously conducted standard compliance checks of the practices of Apostle including in respect of (the expenses service) – there has been no finding of wrongdoing."
"HMRC has.... unilaterally made a decision to revisit rebate returns from former clients of Apostle, including claims made as long ago as 2016.
It added: "Apostle in no way accepts the allegations against it or liability for payments HMRC may be seeking from former clients."
"Working closely with its solicitors, and external independent advisors, Apostle will be submitting a thorough submission to HMRC explaining why it believes there has been an incorrect application by HMRC officers of its own rules/guidance.
"For the avoidance of doubt, it strongly contests allegations, if any, of non-compliance issues and/or fraudulent tax claims and is entirely confident that it will demonstrate its compliance with the applicable rules and regulations and will continue to liaise with HMRC.
"Apostle has and always aims to act in a transparent manner and with the utmost good faith at all times."
HMRC says it cannot comment specifically on Apostle Accounting.
"They need to wake up to the impact of what's happening"
Those affected by the rebate scandal are also critical of HMRC, which is adding interest to the money people have to pay back.
Some have accused the taxman of using 'scare tactics', by continuously increasing the repayment amount to compel people to pay quickly
Kevin, who was one of the first to receive a demand for repayment said: "When you do get a letter, you soon get another letter with another amount for the interest."
"If you get a letter... by the time you get to pay it, the interest has already gone up from the time it's been in the post."
Lee, who maintains a list of people affected by the scandal, said: "They need to wake up to the impact of what's happening to these people, through no fault of their own."
"It's not right and it's not helping the wellbeing of all these people."
Greatest Hits Radio has been told letters sent to several former Apostle customers contained incorrect figures or were sent to the wrong address.
In at least one case, a repayment letter was unreadable due to a printing error.
An HMRC spokesperson said:
“We are looking into what happened with these letters and apologise to those affected.
“Our advice is consistently clear - people should always be cautious about promises of easy money, and if it sounds too good to be true, it probably is.
"We have a legal duty to recover incorrectly claimed money and taxpayers remain responsible for any claims made on their behalf.
“We never endorse the services of individual agents, so any suggestion by any company that we have given such approval is completely false.”
HMRC added: “Anyone concerned about their tax affairs should contact us directly without delay - we’ll do everything we can to support taxpayers who engage with us to get their tax affairs in order, including offering payment plans."
Have you been affected by any of the issues raised in this article? Contact us at: eastnews@bauermedia.co.uk