The gunnercooke network: combining finance and legal expertise for a positive outcome 

Did you know that, at gunnercooke, we offer more than just legal services. Whilst it’s true that we have industry-leading partners across a variety of sectors and practice areas, we also have our operating partners, who are financial and tax experts, ready to work alongside our partners in any of their cases. 

Recently, Operating Partner Neeraj Nagarkatti worked alongside Debt Recovery Partner Adam Taylor to ensure a positive outcome for a client when resolving a VAT refund issue.  

We spoke to Neeraj to find out more about how he and Adam leveraged each other’s operational and legal expertise to find a solution for the client. 

What was the background to the deal?  

In late 2022, an EU-based client purchased equipment from a UK supplier and exported it outside the UK.  Typically, the UK supplier should refund the VAT upon receiving the proper export documentation within three months. However, despite our EU client’s repeated attempts, the UK supplier remained unresponsive. 

The VAT amount was within the five-figure range, making it worthwhile to recover. We communicated with the UK supplier, though emails, phone calls, and reminder letters, but received no response. Even a generous payment plan was ignored. 

How did you go about finding a partner who was best placed to support you? 

By early 2024, realising the need for a more robust approach, I contacted gunnercooke’s Partner Services team, asking for their recommendation for a partner who has experience in debt recovery. They recommended Adam Taylor, whose debt recovery work includes acting for a government body and professional firms outsourcing collection of fees. 

How did working with Adam add value for the client and help you secure a successful outcome? 

We faced several significant challenges including: 

• No Formal Contract: The six-figure transaction lacked a signed contract. 

• Extensive Correspondence: There were over 200 pages of mostly repetitive email correspondence. 

• Validity of the claim: It was challenging to pinpoint where the UK supplier explicitly agreed to refund the VAT. 

Despite these hurdles, our export documentation was robust. After identifying specific supporting texts, we felt more confident in our claim.  

Through Adam’s negotiation skills, the supplier agreed to pay both legal fees towards debt recovery and the VAT refund after the next VAT quarter. 

What are the major benefits of having a network on hand through gunnercooke?  

For our clients, there is a variety of expertise to hand, whether that be if they need legal support or financial knowledge. For example, partners with UK SME clients who don’t have finance personnel in-house we can offer to contact our operating partners who can support with finance and tax queries. This gives the client the best possible chance for a positive outcome.  

Another example would be for high-value purchases, especially cross-border, establishing formal contracts is crucial. This mitigates risks and provides a clear framework for both parties. Our legal partners at gunnercooke offer effective contract review and negotiation. They can also assist with dispute resolution if required. It’s fantastic having access to such a variety of knowledge and expertise in one place, which you can access at any time.  

This case highlights the value of persistence, expertise, and collaboration in resolving VAT refund issues. It emphasises the effectiveness of combining finance and legal knowledge, demonstrating that such collaboration in international business transactions can lead to successful outcomes in complex cases.