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Armstrong Watson has announced the appointment of Paul Russell as head of VAT and indirect tax to strengthen its advisory capability across northern England and Scotland.
Russell joins the firm with more than 27 years of experience in indirect taxes, having worked at HMRC for 16 years before holding senior positions at BDO and RSM.
The appointment comes as HMRC intensifies enforcement to close the UK tax gap of £46.8bn. Tax authorities opened nearly 12,000 probes into large companies in the year to March 2025.
Data obtained via freedom of information requests shows a 31% increase in investigations, with one in three large UK companies faced a VAT investigation during the last year.
Average recoveries exceeded £8m per case in completed investigations into the largest businesses. Officials are focusing scrutiny on areas where potential financial recoveries are highest.
The firm noted that recent challenges often arise from legal interpretation of complex legislation. This includes partial exemption, zero-rating, and cross-border transactions rather than clerical errors.
Becky Bowness, head of tax at Armstrong Watson, said: “Paul is an outstanding addition to our leadership team. He brings a rare combination of deep technical VAT expertise, senior advisory experience and first-hand HMRC insight.”
Russell added: “We are seeing a clear shift in HMRC’s approach. Investigations are more frequent, more detailed and increasingly focused on judgment and interpretation rather than obvious mistakes.
“The financial exposure can be significant, but so too can the disruption to management time and the reputational impact. Taking a proactive approach to VAT risk has never been more important.”
