Tax firm raided by HMRC 'closes abruptly'

The BBC has been told Green Jellyfish had recently moved out of the Union Building in Norwich

A company offering tax relief services has closed down just weeks after it was raided by HM Revenue and Customs (HMRC), the BBC has learned.

Multiple sources said staff at Norwich based Green Jellyfish were told it was no longer in business on Monday morning, although its website is still live.

The BBC revealed warrants had been executed at its offices and elsewhere on 25 September on suspicion of tax relief fraud.

The company said: "We regret to announce that Green Jellyfish has ceased trading."

Green Jellyfish's offices were based at the Union Building in Norwich, but when the BBC visited the premises, on Rose Lane, it was told the company had moved out.

Other firms within the same group of companies still occupied parts of the building.

These included Kirby and Haslam, which was also raided by HMRC officers at the same time as Green Jellyfish.

Eleven people were arrested when the warrants were executed around the country.

At the time, spokesmen for both companies said they had "nothing to hide".

Green Jellyfish added: "We understand that HMRC has a job to do, and we are fully cooperating and supporting them with the investigation."

The raids in Norwich started at about 07:00 and officers remained on site for most of the day.

An HMRC officer was spotted outside Union House on the day warrants were executed

According to Companies House, Green Jellyfish's name was changed in 2023 to GJ2020 Ltd.

Last week, the entity listed as being in control of the business was changed to Impact Business Partnerships Ltd.

According to HMRC, the recent arrests were part of a coordinated operation to tackle suspected abuse of the research and development (R&D) tax relief system.

Companies can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure.

Jonathan Smith, HMRC’s director responsible for agent compliance, said: "These arrests are just one small part of the comprehensive and wide-ranging action we’re taking to tackle suspected R&D fraud.

"We are committed to supporting honest businesses and their agents, to get the tax reliefs they’re entitled to.

"We urge anyone with information about any type of tax fraud to report it to HMRC online."

In a statement, Green Jellyfish said: "We extend our gratitude to our valued staff who have lost their jobs."

It added: "We are unable to comment further at this stage due to the recently announced HMRC investigation.

"We look forward to a speedy and positive outcome."