Update – Christopher Lunn & Co – TV and Media Specialists

Update on Christopher Lunn and Company…

Hot off the press. Deal done! Great news for the TV and Media Industry…

Blue Skies are proud to announce that an agreement has been reached with HMRC which will affect all Christopher Lunn and Company clients that have made a disclosure.

Blue Skies are delighted to be involved in a deal that has helped reduce the costs to the individuals in the TV, Media and creative arts industry that have been affect by the Tax investigation into accounts prepared by Christopher Lunn and company.

To find out more about the deal please click on the links below.

http://www.tvwatercooler.org/viewtopic.php?f=45&t=3672&sid=d78e83c9a56b2e9c6bd39abce2ed5c6d

http://www.broadcastnow.co.uk/news/regulation/hmrc-simplifies-lunn-disclosure-process/5033048.article

The Background:

Blue Skies are professional accountants and business and tax advisors and our profession is Accountancy and Tax, but our industry is TV, Media and the Creative Arts.

Here at Blue Skies we think it’s important to report on any news directly related to the TV, Media and Creative Arts industry, and those who work in it. This includes sharing information that may affect others working as TV and media specialists or other business and tax advisors.

Most professional TV and media people working in the Media and Creative Arts industry will already be aware of the ongoing investigations by HMRC into the tax affairs of all past and present clients of Christopher Lunn and Co (CLAC). For professional accountants, and business and tax advisors all over the country, this investigation has highlighted the need for the whole accountancy and tax profession to both act with integrity, and clarity in it’s dealings with HMRC on behalf of clients. HMRC have proved that they have the ability to, legally, start a process which, in only 28 days, could lead to that accountant being “blacklisted” by HMRC.

While CLAC are still able to operate as professional accountants, the ongoing investigation and negative press surrounding the situation is sure to be making life much more difficult for them. With their tax agent status removed and teams of HMRC inspectors being called together in order to carry out the investigation (which is expected to take several years) it has become clear that every current or previous client of these TV and media specialists must take action immediately, in order to protect their own interests. As professional accountants and TV and media specialists, it’s estimated that the number of their clients affected is around 4,500 to 5,000.

Consequences For Business and Tax Advisors, TV and Media Specialists

It’s important to point out that this is not an attack on TV and media specialists or professional accountants by the taxman, but it does mean that there will be significant ramifications for professional accountants and business and tax advisors acting in all industry sectors – some of which are already being felt.

The tax man is now likely to be much more critical when deciding whether professional accountants can also act as business and tax advisors/agents for their clients (a consultation paper has already been produced and circulated regarding this). Professional accountants need to ensure that they follow processes that the tax man considers correct and secure – otherwise if their actions as business and tax advisors leads to underpaid tax, HMRC can effectively shut down the professional accountant with just 28 days notice. The 28 day period is to enable the company to prepare a case in its defence.

This news has come as quite a shock to both the accounting profession and also the TV and Media and Creative Arts industry in the UK. We are finding that people looking for professional accountants, or business and tax advisors who operate as TV & media specialists, have become increasingly more interested in the qualifications (Such as ACMA/ CIMA, ACCA and ACA) and professional indemnity insurance of the companies they’re looking to deal with. We would like it to be known that Blue Skies employs qualified professional accountants, and as such are fully regulated – we also have approximately £60m of insurance cover, although thankfully we’ve never had cause to claim on this.

Blue Skies Professional Accountants

Whilst here at Blue Skies we make no judgement on whether CLAC have acted correctly or not, we think it’s important to direct anybody who may have been affected by this towards the best source of up to date advice regarding this situation. The TV watercooler forum is the only public source of unbiased information regarding the CLAC investigation that we’re aware of. Steven Sykes, MD of Blue Skies, has been writing on the Christopher Lunn issue since September 2010 and writes on this site under the tag “Media Accountant”.

If you, or someone you know is affected by this matter please keep up to date by regularly reading the posts on the forum:
http://www.tvwatercooler.org/viewforum.php?f=45&sid=7fb7a7f9bcb5e9ee66cebe856b52c076

If you would like to speak to one of our TV and media specialists and professional accountants regarding any tax or accountancy issues, please contact us via the link.