Q: Why is it vital that Care Operators prioritise joining the Action?

A: This is a very unusual situation. Our renowned KC Roderick Cordara has categorically stated that it is impossible HMRC are right in this matter, and our multi-year root and branch review has established that HMRC have recognised and then concealed their mistake. 

The next stage in the process will lead to a hearing. It is at this stage the full finding of our root and branch review will be revealed, which will be acutely embarrassing for HMRC and potentially reputationally damaging. 

The potential implications for HMRC, if this matter proceeds to a full hearing, cannot be overstated and it is for this reason HMRC may seek to settle, to limit their exposure. In these circumstances, our legal advice is clear and unequivocal. It is highly advisable to be within the Group to protect and safeguard your position, rather than outside the Group.

Q: Why is an entry fee to the Action Group required? 

A: When initiating a legal claim against a government body like HMRC, the costs can be significant. Claimants typically have two options for covering these costs: 

1.      Using litigation funding to cover expenses, or

2.     Self-funding.  

We have considered using litigation funding. However, upon closer evaluation, it became clear that litigation funding comes with significant drawbacks. 

One of the most concerning aspects of litigation funding is the proportion of the settlement that the funder can take. In high profile cases, like the Post Office scandal, the claimants received only £11 million out of a £57.75 million settlement, with the remainder going to the litigation funder. This means the funder can end up with the bulk of the settlement, even though they are not directly affected by the case.

By creating a large claimant group and charging an entry fee to each, there is certainty, and each care home operator pays the same modest amount and will receive the lion’s share of the settlement.