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The benefits of tax investigations protection

19th August, 2020

The cost of defending yourself against a HMRC investigation is potentially huge; even when the outcome of the enquiry results in no adjustments to your tax position, defence fees can be just as costly. It is therefore a more important time than ever to having tax investigations insurance in place, as Clayton & Brewill explains.

tax investigationsTax 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.

Financial implications

HMRC enquiries are also better targeted and are being undertaken with an unprecedented level of detail and persistence than ever before. In 2018/19, the total tax revenue increased by £22bn to £627.9bn with compliance activity yielding £34.1bn – a 12.5% increase in additional tax on 2017/18.

With the costs associated regularly exceeding several thousands of pounds, and the average HMRC enquiry lasting up to 19 months, an investigation can be time-consuming, stressful, and have serious financial implications. It is therefore vital that you are covered should you or your business be selected for investigation.

Tax investigations protection: what are the benefits?

Tax investigations protection covers accountancy fees incurred by your accountant in the event of an enquiry. At just a small annual cost, it provides you with the peace of mind that you are fully protected against the potentially large professional costs associated with a HMRC enquiry. It also protects your tax position by ensuring you receive the best defence should you need it.

Clayton & Brewill has partnered with the market-leading provider in order to offer you the best available tax investigations protection. For those who subscribe to the service, Clayton & Brewill will:

  • Respond to HMRC on your behalf and provide you with full representation
  • Deal with the tax authorities and prepare and defend your case fully
  • Handle all correspondence and meetings with the tax inspector
  • Give you peace of mind that professional representation costs are covered

Clients who subscribe to the service will also receive 24-hour access to a business legal helpline, ensuring you have the right support when you need it most. Available 365 days a year, the helpline provides access to a team of qualified solicitors and barristers, who can assist with employment law, health and safety and commercial matters.

We recommend that all clients subscribe to this service, as the cost for protection is a fraction of typical defence costs.

To find out more about our tax investigations protection service, please get in touch with Michele Skelton, who will be happy to provide you with further information.

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