HMRC has continued to increase the amount of investigations that it carries out into innocent taxpayers. Last year was HMRC’s seventh consecutive year of record tax revenue, collecting a total of £574.9bn. That’s a staggering £38.1bn more than the previous year. The costs of an enquiry can run into many thousands of pounds, so we strongly recommend to all clients that they take out protection against the costs of an enquiry, through our Tax Enquiry Fee Protection Service.
You can be selected at random
HMRC is set with ambitious targets and is therefore continually investing in new technology and strategies to maximise its tax revenue. HMRC do not need a reason to investigate you and they can investigate anyone at random.
For most, if your affairs are in good order there should be little to worry about. It is however, the norm that when the Revenue make enquiries they will expect your professional adviser to explain how the computations have been prepared and how the amount of tax payable has been derived. As your trusted adviser we will also be best placed to support and advise you through the enquiry process and to deal with any specific issues that arise. Few individuals or businesses though have budgeted for such an expense and for some the cost could be more than they can afford.
Tax Enquiry Fee Protection offers peace of mind
To provide peace of mind we offer all of our clients a Tax Enquiry Fee Protection Service. The service is backed by an insurance policy which we have taken out in our own name and under which we can claim the costs of defending clients who face tax enquiries.
Protecting yourself costs less than you think
For a small fee we offer protection for up to £100,000 worth of fees if you are investigated. Please note that if you are a Director of your company, the protection would not only protect the company against investigation but would automatically protect you if HMRC were to investigate your personal tax affairs (as long as we are the tax agent for the Director).
Warning for 2018
Unannounced HMRC visits
HMRC has the power to make unannounced visits to a business. Sometimes these visits can be late at night.
As a user of our Tax Enquiry Fee Protection Service, you will have access to a free helpline that can provide you with expert advice on how to deal with this situation “there and then” should you receive an unannounced visit from HMRC.
When faced with this very real threat it is important you have the support and advice of an expert 24 hours a day and 365 days a year. Our “out of hours” helpline will do this for you. It is not uncommon for HMRC to visit a business at 11 o clock at night. Should this happen to you it is great to know that you will have the peace of mind of instant access to an expert to advise you accordingly.
HMRC are using a piece of highly efficient software which is accessing and trawling through your financial information right now.
The ‘Connect’ system is scouring vast databanks to unearth discrepancies between taxpayers and businesses, income, assets and transactions. However, sometimes they may not be correct and select the wrong targets.
We are constantly vigilant and stay up to date with the latest tax advances, but you are still at risk of an investigation at any time.
HMRC are conducting a record number of Tax Investigations and compliance checks.