With HMRC enquiry activity being more focused and targeted than ever before, tax investigations are on the increase. In 2017-18 alone, HRMC collected £30.3 billion through compliance activity. Nottingham chartered accountants, Clayton & Brewill explains more about tax investigations and why it’s important to ensure you have tax investigations protection in place.
Tax investigations and queries initiated by HMRC don’t just 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.
The average HMRC enquiry lasts 19 months, with the costs associated regularly exceeding several thousands of pounds.
Why it’s important you have tax investigation protection in place
- Firstly, for peace of mind. For a small yearly cost, you can rest assured you are fully protected against professional costs associated with a HMRC enquiry.
- Having the necessary tax investigation protection in place will ensure you receive the best defence – so your tax position is also protected.
- Investigations are on the rise. HMRC has greater access to technology and data (including banks, building societies, letting agents, DVLA, mortgage applications and data from overseas tax authorities) than ever before. It claims it can link any information received concerning any individual taxpayer to the taxpayer’s file in minutes.
- The focus for HMRC has changed over the past few years and they are now concerned with maximising the revenues due.
- Tax investigations can happen to anyone, whether you’re an individual or a business. HMRC’s Connect System currently selects nine of every ten enquiries and it is designed to identify those who may have paid too little tax. Even if you’ve done nothing wrong, anyone can be selected – meaning no-one is immune to scrutiny.
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 protection covers the professional costs of your defence and ensures that an expert adviser will handle all meetings and negotiations on your behalf.
How we can help
Clayton & Brewill have partnered with the market leading provider to offer clients reliable and comprehensive tax investigation protection in the event of a HMRC enquiry. For clients who subscribe to the service, Clayton & Brewill will:
- Respond to HMRC on your behalf and provide full representation
- Deal will the tax authorities and prepare and defend your case fully
- Handle all correspondence and meetings with the tax inspector
Subscribing to the service provides peace of mind that you will be covered for professional representation fees. We recommend that all clients subscribe to this service, as the cost for protection is a fraction of typical defence costs.
As well as fee protection, you will also receive 24-hour access to a business legal helpline. The helpline is available 365 days a year and provides access to a team of qualified solicitors and barristers who can assist you with any employment law, health and safety matters and commercial issues or queries that you may have. They can provide advice on a range of issues, including:
- Maternity rules
- Accidents at work
- Supplier disputes
The law changes constantly, so this helpline ensures that you have the right support when you need it most.
To find out more about our tax investigation protection, please contact Michele Skelton who will be happy to provide you with further information.