Each year HM Revenue & Customs (HMRC) undertake an enormous number of tax enquiries into individuals and businesses to check they have paid the right amount of tax. Since 2010, HMRC have strengthened their approach to enquiry work and consequently secured a record £30.3 billion of additional tax revenue in 2017/18 alone.
These results have been achieved by proactively targeting individuals, traders and businesses using sophisticated software, data and wider powers, enabling enquiries to be targeted more efficiently and on a greater scale.
Tax enquiries can last for months, even years and defending you against HMRC’s detailed questions requires specific expertise and can be time consuming and costly. The cost of dealing with an enquiry can amount to thousands of pounds, even if no extra tax is payable.
Why is HMRC investigating?
In the UK we live in an environment in which the taxpayer is responsible for their own tax liability. HMRC opens investigations, on a random or selective basis, to see if the taxpayer has paid the right amount of tax. All this helps the government fill its deepening public finance black hole.
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.
Alternatively you can call your local office or email email@example.com
The Service is backed by an insurance policy from Vantage Tax Fee Protection Ltd which we have taken out in our name.
HMRC now uses a sophisticated database called ‘Connect’ to start more than 80% of its tax enquiries. The system collects data from 30 different sources, including UK and offshore banks, Companies House, the Land Registry, estate agents, the DVLA and other licensing authorities and social media.
The data can be instantaneously reviewed by more than 3,000 HMRC investigators to produce a financial fingerprint for any taxpayer. If there are any discrepancies between tax returns or business accounts sent to HMRC, a tax enquiry will follow as sure as night follows day. Tax enquiries started from ‘Connect’ have produced billions of pounds in additional tax over the last few years.
Using ‘Connect’, HMRC can now target enquiries more accurately than ever before, however they still get it wrong sometimes. That is why we will always challenge HMRC regarding their reasons for an enquiry when defending clients.