TV stars' accountant blacklisted by taxman

Fiona Bruce's former accountant was facing ruin today, after formally being told by the taxman that it would no longer deal with him. The decision will create further complications for the thousands of freelance clients working in stage and screen who depended on Christopher Lunn and Company. HMRC told Lunn today that it would no longer recognise any returns filed through his East Sussex-based firm. The taxman is pursuing Lunn and his 7,000 clients for what it believes is £117m in unpaid tax. In a court judgment published in February it emerged that HMRC believed there were systematic errors in tax returns filed on behalf of clients by Lunn's firm. HMRC feared that one client had allegedly omitted £7,000 of income from their return, claimed that £65,000 of income came from a "non-domiciled distant relative" without the necessary supporting evidence, and said that a holiday in Palma had in fact been a business trip to New York. Another client submitted a return which had claimed no income from property, despite their bank statements featuring income labelled "rent". HMRC raided Lunn's offices in June last year, with Lunn and his son Jonathan arrested and interviewed under caution. The taxman is pursuing a criminal investigation into the firm and a separate civil inquiry into Lunn's clients to claw back unpaid tax. Christopher Lunn acted for thousands of TV freelancers and stars including Fiona Bruce and fellow newsreader Joanna Gosling. Companies House records indicate that Bruce and Gosling's service companies, which had been registered at Lunn's firm's address, are now registered at the addresses of different accountants. The decision, which has immediate effect, means that current clients will need to find a new accountant to file their tax returns, as well as somebody else to represent them in the ongoing civil inquiry. Around 1,500 clients are thought to have left since the problems began. HMRC had earlier tried to withdraw Lunn's ability to file returns, but lost a judicial review into its move after the courts said it had not followed proper processes. The tax authority said it would write to all Lunn's clients, past and present, to inform them of its decision. Permanent secretary for tax Dave Hartnett said: "HMRC decides to stop dealing with tax agents only in exceptional circumstances, where we have reason to believe there may be serious irregularities in tax returns and accounts." A spokesman for Christopher Lunn said: ""Our lawyers have today received notification that HMRC has, yet again, decided to refuse to deal with CLAC as a tax agent. In making this decision, we believe that HMRC has acted wrongly and improperly and we will be contacting them to demand an explanation of their conduct." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication". • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook