Tax Investigations Protection

Tax Investigations Protection

Protecting you from an HMRC enquiry

HMRC’s Connect System is an £80m investment programme and now contains over 22bn lines of data. HMRC claims that any information received by them concerning any individual taxpayer can now be linked to the taxpayer’s file in minutes.

HMRC enquiry activity is more focused and better targeted than ever before. Investigations are intrusive, costly and time consuming. In 2017-18 HMRC collected £30.3 billion through compliance activity.

We provide a valuable tax investigations package to ensure you get the best possible defence without worrying about the cost. We are confident that our service delivers the most comprehensive protection against any potential fees arising from professional representation in the event of an HMRC enquiry.

Anyone can be investigated.
 
Due to the increased focus in 2017 HMRC introduced its Connect System, designed to identify those who may have paid too little tax. It is now responsible for selecting 9 out of every 10 enquiries.
Even if you’ve done nothing wrong, anyone can be selected
– meaning no one is immune to scrutiny.

No business is too small or too large for HMRC to challenge; those targeted include cash businesses, tradespeople, farmers, medical professionals, solicitors and individuals.
  
HMRC selected a large restaurant chain for an unannounced visit and subsequent VAT enquiry. After 2 years, HMRC raised a best judgement assessment of c. £100k.

The practice pursued matters through Alternative Dispute Resolution resulting in costs of £15,000. The enquiry concluded with no additional tax liabilities. An enquiry into a non-resident individual took several years, with HMRC requesting a large amount of very detailed information. After numerous exchanges of correspondence, HMRC ultimately concluded that the tax treatment was correct.

The enquiry costs amounted to in excess of £30,000.

A law firm was subject to an employer compliance review where HMRC was specifically considering the status of self-employed workers. The accountant challenged HMRC’s view that the workers should have been employees. After a 4-year enquiry, a successful outcome was achieved.

Accountancy costs in respect of this enquiry were £10,000.

HMRC opened a full enquiry into a self-employed caterer. The Inspector requested all of the books and records at the outset and subsequently made further enquiries about the expenses claimed. The practice managed to close the enquiry via correspondence alone, with no adjustments required to the return.

Yet fees still amounted to £2,000.
*All claims concluded across 2017/18.

Where we come in

No-one can prevent an investigation, but our tax investigations package:

– Will remove your concerns about the cost of an enquiry
– Ensure you receive the best defence so that your tax position is protected
– Enable us to challenge HMRC’s assertions and assumptions head on
– Ensure that the basis of any enquiry is correct and that your case is handled fairly
– Handle all communications with HMRC, including letters, phone calls or notices issued
– Ensure the tax inspector is only asking for relevant information and documents and provide all supporting information from our files that relates to your accounts
– Prepare for and attend any face-to-face meetings with the tax inspector
– Argue any complex or technical tax cases that are raised during the enquiry

So whether it’s a PAYE or VAT visit, a technical enquiry or full blown books and records enquiry, our tax investigations service is designed to get you the best result. That’s why we strongly recommend that all our clients subscribe. For more information on this service please contact the office.