We all maintain subscriptions to various insurance policies, safeguarding us against potential car accidents or roof leaks. Yet, have you considered your tax return? What if HMRC initiates an expensive inquiry into your personal or business matters?
Our normal annual fees do not cover the additional professional costs of handling tax enquiries and compliance checks. This is why we present our Fee Protection Insurance Service, providing protection from the financial burdens, stress, and uncertainties stemming from an HMRC investigation.
Even if no extra taxes are owed, such inquiries can prove costly and prolonged, stretching for months. With HMRC striving to close the £35 billion tax gap, where small businesses and individuals contribute over half of this sum, investigations have markedly surged.
The frequency of investigations has risen sharply. If this service has not crossed your mind previously, now is the opportune moment. Should you be selected for investigation, we’ll accompany you through every phase, freeing you to focus on your strengths. Early resolution hinges on prompt professional representation, a fundamental aspect of your defence. Our Tax Investigation Service includes:
- Comprehensive representation from us in the event of an HMRC investigation.
- An insurance-backed service granting £100,000 fees indemnity, with no excess.
- The assurance that we will liaise with HMRC on your behalf, alleviating worries about escalating additional charges.
6 Good Reasons to Take Action
- HM Revenue & Customs (HMRC) enquiries can be random and can come at any time.
- Enquiries are on the increase as HMRC look to generate more tax to fund the enormous spend through the Covid-19 pandemic.
- HMRC are using enquiries to ensure that the measures put in place to support the economy through the Covid-19 pandemic have been utilised correctly.
- If you are subject to an enquiry we will represent you and our expertise will help save time and money in the long run.
- Our normal accountancy fees do not include the cost of dealing with enquiries which can be costly and complex, even if no additional tax becomes due.
- Our Tax Fee Protection protects against costs incurred dealing with HMRC enquiries.
Claims Examples
Building contractor subject to a Full Enquiry, PAYE & VAT Compliance Visit
HMRC targeted a group of companies, opening full enquiries into each of the group member’s tax returns, including the group Directors’ personal tax returns, as well as undertaking a PAYE and VAT Compliance Review. More than £10,000 of accountancy fees was incurred providing the books and records, submitting further detailed information in respect of each of the entities under enquiry and attending long and detailed meetings with HMRC. On completion, it was concluded by HMRC that no significant adjustments were required.
Self-employed consultant subject to a Full Enquiry
HMRC requested all of the books and records and then raised questions regarding self-employment income, rental income and income from employment. At the conclusion HMRC identified approximately £12,000 of underpaid tax, due to overstated expenses (due to bookkeeping errors). However HMRC accepted a negotiated settlement of £6,000. Accountancy fees exceeded £5,000.
Property developer subject to a VAT Compliance Review
Following a VAT compliance review it was determined that given that the client was making both exempt and VATable supplies, they should not have recovered 100% of input tax in previous years. The client’s accountant successfully disputed the assertion on the basis that the client was below the partial exemption de minimus limit, avoiding a potential liability in excess of £20,000. Accountancy fees of £3,500 were incurred.
High Net Worth Individual targeted by HMRC
Enquiries were opened into the 2016 amended and 2015 self-assessment tax returns and covered income from self-employment, foreign property, loan interest relief and capital gains arising on the sale of shares, futures and options. Fees were incurred meeting the client and HMRC and exchanging extensive written correspondence in response to complex technical issues. At the conclusion it was deemed by HMRC that no significant adjustments were required. Accountancy fees of £10,000 were incurred.
Retired individual subject to an Aspect Enquiry
HMRC receive information from banks and other financial institutes and compare the information received to
the entries on the individual’s self-assessment tax return(s) to check for completeness. As a consequence HMRC commenced an enquiry, inviting an individual to reconsider the information returned as they held information to suggest taxed and untaxed interest had been omitted and understated. The enquiry was concluded with no amendment being made to the self- assessment tax return, with the information supplied by one financial institute found to be flawed. However accountancy fees of £2,000 were incurred disputing HMRC’s findings.
The Fee Protection Insurance service will cover:
Professional fees incurred in respect of:
- Corporation Tax and Income Tax full or aspect enquiries
- PAYE/NIC compliance checks from the outset and disputes with
HMRC following such checks - IR35/Employment Status/CIS enquiries and disputes
- VAT compliance checks from the outset and disputes with HMRC
following such checks - Enquiries under Section 60 or 61 of the VAT Act 1994, provided
that at the culmination of such investigation it is proved that the Client was not found guilty of dishonesty, fraud or fraudulent intent - Business record checks, inspections and interventions under HMRC’s Information & Inspection Powers at Schedule 36 FA 2008
- Up to £250 of costs relating to an informal request for information by HMRC, by telephone or other means
- Inheritance tax/ Probate return enquiries
- Stamp Duty and Stamp Duty Land Tax Enquiries
- National Minimum Wage / National Living Wage enquiries
- Child tax credit enquiries
- Student Loan enquiries
- Gift Aid enquiries
- Companies House confirmation statement enquiries
- Enquiries into Scottish taxes
- Auto enrolment return enquiries where the Policyholder has been
engaged to complete the appropriate reporting statements and
declarations - Code of Practice 8 investigations, provided that at the culmination
of such investigation it is proved that the client was not found
guilty of dishonesty, fraud or fraudulent intent - Applications for judicial review, subject to Vantage consent