We have been seeing more investigations recently, and are concerned that HMRC will conduct more tax Investigations and enquiries into innocent taxpayers and businesses over the next year. HMRC are under pressure to close the £36 billion tax gap of revenues lost from tax avoidance and evasion.
There have been huge amounts of money invested into HMRC’s resources to investigate, and they have a £50 million database system called Connect, which collects information from multiple sources, including banks, local councils, land registry and even social media to try to identify where avoidance might be taking place. 100 task forces have been set up to look at particular types of businesses which are likely to have under declared or underpaid taxes. We have also seen more specific checks where the software is identifying where it thinks specific entries are missing such as interest on investments.
Many returns are now scanned digitally to identify any anomalies. Whether you are in the wrong or in the right, it can still be extremely time consuming and stressful finding and supplying all the information required. We would of course support you every step of the way.
We run a Tax Investigation Service to help protect clients against the professional costs involved in a tax investigation or enquiry. This service is backed by an insurance policy we have taken out in our own name. We must stress that dealing with a tax investigation is not included in our normal fees and the costs involved could be substantial.
A tax investigation could last for several months if not years and can be extremely stressful for you. We strongly recommend you consider subscribing to our Tax Investigations Fee Protection Service. Please note that if you hold a policy with someone else, it would cover you for THEM to deal with your enquiry, not us.
If you have any questions or are unsure about the correct policy for you, please do not hesitate to contact us.
|Type of return
||Annual charge (including VAT}
|Sole Trader (turnover <£1m)
|Partnership (turnover <£1m)
|Limited Company (turnover <£1m)
|Limited Company (turnover £1m - £5m)
(Rates correct for the year to 30 November 2017)
The business subscription includes the tax affairs of all Partners and Directors; however, this will not extend to any other business in which they are engaged. (This excludes Rental Income under £50,000 per annum.)
This is an annual premium. If you take it out part way through the year it is pro-rated accordingly.
Please call us on 01259 752232 or email firstname.lastname@example.org to arrange your policy with us.