Tax investigations and queries initiated by HMRC don’t only take their toll financially, they are also time-consuming and stressful. HMRC is spending more money than ever on tax investigations making it vital that you are protected, should you or your business be selected for investigation.
Year on year HMRC is targeted to increase revenue from tax compliance and is investing an extra £800m on compliance activity, with £300m specifically set aside to target SMEs and high net worth individuals. They are aiming to collect an additional £27 billion in revenue for the Treasury over the next 12 months.
The average HMRC enquiry lasts 19 months with the costs regularly exceeding several thousands of pounds.
Although unfortunately, nothing can be done to stop you from being selected for an enquiry, you can ensure you are prepared and protected from the associated fees.
To reduce your risk of being investigated it’s important to:
Tax investigations are stressful and costly. Defending your case can cost thousands of pounds in professional fees. However, you can protect against these costs by taking out tax investigation protection. In the event of an investigation, this will ensure that the professional costs of your defence are covered and that an expert adviser will handle all meetings and negotiations on your behalf.