Home » Accounting » What protection do you have against a HMRC enquiry?

What protection do you have against a HMRC enquiry?

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, both on a random and a selective basis. Since 2010 HMRC have strengthened their approach from this point of view and the general trend has been a year-on-year increase in the number of tax enquiries opened.

HMRC can consider all aspects of taxation and more recently HMRC have also used investigations to ensure that the measures put in place to support the economy through the Covid-19
pandemic have been utilised correctly.

If you are selected for a tax enquiry, we will always robustly defend you from HMRC’s questions, but the detailed questions asked can often be time consuming and intrusive. Our fees can amount to thousands of pounds, even if no extra tax is due.

It will come as no surprise to you to hear that HMRC activity is expected to increase in the forthcoming months and years as HMRC look to recover the government financial support through the Covid-19 pandemic, as well as ensuring that the measures put in place to support the economy through this period have been utilised correctly by taxpayers.

Are you protected against a HMRC enquiry? If not, you can find out more below about our Fee Protection Service.

Why is HMRC investigating?

In the UK we live in an environment whereby the taxpayer is responsible for their own tax liability. HMRC opens investigations to see if the taxpayer has paid the right amount of tax on a random or selective basis. All this helps the government fill its ever expanding public finance black hole.

Beware of “Connect”!

HMRC now uses a sophisticated database called ‘Connect’ to start more than 80% of 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.

Using ‘Connect’, HMRC can now target enquiries more accurately than ever before – but they still get it wrong sometimes. That’s why we will always challenge HMRC regarding their reasons for an investigation when defending clients.

What could an investigation involve?

HMRC will write to you or visit your business premises. They will potentially want to review all your books and records or will ask for more detailed information about specific transactions on your Tax Returns. At the end of the investigation HMRC may look to raise an assessment for additional tax due. If you are subject to investigation we will respond to HMRC’s requests for information and/or attend meetings with HMRC. We will provide our workings with detailed explanations and we can dispute any assessment for additional tax due.

Where our service comes in

If the HMRC states its intention to investigate your tax payments don’t panic. Call us – your dedicated accountant and best defence. We will translate the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal accounts.

Our Tax Fee Protection Service will cover fees incurred translating the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal accounts.

As an additional benefit this protection provides complementary telephone access to employment, health & safety and general legal advisors, including support for employers with any adjustments made in response to the COVID-19 pandemic.

We’ve shopped around for the best insurance policy for you, and this year your cover also includes Employment, Health & Safety and Business Legal support lines 24 hours a day, 365 days a year.

Your fee for the annual policy from 1st April 2022 to 31st March 2023 covers any work we prepare and submit on your behalf and advice we provide.

“HMRC activity is expected to increase in the coming months and years as HMRC look to generate more tax to help fund the enormous spend through the Covid-19 pandemic. Purchasing our Tax Fee Protection Service means that if you are subject to investigation by HMRC our fees are one less thing for you to worry about. We can defend you for as long as it takes to achieve the right result.”

Protect yourself today!

HMRC checks and enquiries can typically cost £3,000 to £5,000 + VAT (and that’s often where you have done nothing wrong!) You protect your business against the unexpected, with contents, employment, equipment, life and property insurance, to name but a few; so why not have insurance for a HMRC enquiry?

If you have any questions relating to our Tax Fee Protection Service then please contact us today by contacting Black and White Chartered Certified Accountants, populate the “Got a Question” form on the right, or call us on 0800 140 4644. In the event you are investigated, we will manage your case from start to finish, reducing stress and providing peace of mind. Our Tax Fee Protection Service will ensure you are covered so don’t have to pay £3,000-£5,000 + VAT in fees, even if you’ve done nothing wrong.

Why not sign up to our newsletter using the link below, or follow us across Facebook, Instagram, LinkedIn, Twitter and YouTube to be kept up to date too?

Insights

  • Budget 2022 – Detailed Summary

    Budget 2022 – Detailed Summary

    The Chancellor of the Exchequer, Rishi Sunak, today announced changes to income tax, fuel duty and National Insurance in his 2022 Spring Statement, with a backdrop of forecast growth of 3.8% this year, eroded by forecast inflation of 7.4% this year and spend of £83b on debt interest alone. And this is before the full…

    Read more

  • Budget 2022 – Key Headlines

    Budget 2022 – Key Headlines

    With a backdrop of forecast growth of 3.8% this year, eroded by forecast inflation of 7.4% this year and spend of £83b on debt interest alone, The Chancellor of the Exchequer, Rishi Sunak, today announced changes to income tax, fuel duty and National Insurance in his 2022 Spring Statement. However, many may find themselves somewhat…

    Read more

  • What protection do you have against a HMRC enquiry?

    What protection do you have against a HMRC enquiry?

    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, both on a random and a selective basis. Since 2010 HMRC have strengthened their approach from this point of view and the general trend has been a…

    Read more

STAY UP TO DATE

Newsletter Sign Up

Stay up to date with the latest news and updates from Black & White Chartered Certified Accountants

[contact-form-7 id="248" title="Newsletter"]