There are now more compliance investigations by HMRC than ever as the body focuses its approach to collecting revenue and battling tax evasion - and you don’t need to have done something wrong to be investigated. Anyone who’s submitted a tax return is a potential target. And our tax investigation insurance is your best defence.
HMRC has been evaluating the way in which it conducts compliance checks, which has resulted in a much more focussed approach to collecting revenue, and a significant increase in the number of HMRC investigations.
Many tax investigations can be at random. Unusual fluctuations, undisclosed accounts and random spending can also prompt an enquiry into individuals and companies. HMRC has the power to inspect business documents and assets at your premises, ask for documents and information, make unannounced inspections and go back up to six years to investigate matters. And when HMRC investigates, it can drag on for a year or more, creating mounting costs and increased stress levels.
You do not need to have done something wrong to get investigated - anyone who submits a tax return is a potential target. There doesn’t have to be a specific reason. When everyone is feeling the economic pinch, the risk of an inconvenient, expensive and time-consuming tax investigation is higher than ever.
If HMRC states its intention to investigate your tax payments don’t panic. We are your dedicated accountant and best defence. We will translate the many complicated questions HMRC may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal life.
However, there’s always a catch: the cost of supporting you throughout an investigation is not covered in our usual accountancy fees. This is where a tax investigation policy comes in.
We negotiated tax investigations insurance for our clients with leading providers Professional Fee Protection. If you take out the insurance, all directors and partners will be covered for their personal affairs under the policy. The insurance provides cover for the fees incurred in defending most types of enquiries and disputes.
By taking out a policy, you’ll also be dealing with a trusted and familiar face that knows your affairs – not an unknown accountant who may be appointed if you subscribe to an alternative scheme. We believe that we know your business best and we want to be there for you when you need us most.
Get in touch, and let’s prepare for the unexpected together.
The number of self-assessed taxpayers filing their returns late remains stubbornly high...