Tax investigation insurance can help protect you and your business if you ever find yourself under investigation from HMRC. The number of tax and VAT investigations is increasing every single year. And with HMRCs recent appointment of more than 1,000 investigators, coupled with the range of schemes and support that has been offered over the past year, we expect this to only increase further.
Our recent blog about the CJRS closing highlighted the fact that HMRC investigations are likely to increase over the coming year. This is because HMRC estimates there is a tax gap of £35 billion and believes over half of this is due to Small Business and Individuals. Not to mention the fact they believe much of the Covid support offered may have been fraudulently claimed. HMRC have already started issuing ‘compliance checks’ to businesses. And these are only likely to increase as they try to recover any incorrectly claimed furlough, for instance. So, now is the time to look into tax investigation insurance.
Tax and VAT investigations
To target this, HMRC may undertake Tax and VAT investigations. These investigations are triggered for several reasons. This includes anomalies spotted on their sophisticated software, such as a larger than usual VAT reclaim or a decline in Tax liabilities or because they believe there are potentially fraudulent activities due to poor record-keeping, late filings or even due to a report made by the public. They are also often triggered totally randomly and ultimately any HMRC return can be selected for investigation without cause at any point.
These enquiries can be unfair on the taxpayer, and often do not result in any additional tax to pay. But still, they must be contended and dealt with causing stress and uncertainty. If this was not enough, the taxpayer is strongly advised to engage expert professional representation to ensure a robust response. This of course comes at a cost.
However, if you have tax investigation insurance, you get access to professional representation with no added costs.
“A small retail business received a VAT visit followed by some written questions from HMRC. They had the support of their accountant throughout, right from the notice of the VAT visit. This resulted in a timely conclusion of HMRC’s enquiry and virtually no additional tax to pay. The professional fees amounted to £3,200. Fortunately, the business subscribed to the Tax Investigation Service and these fees were met in full by the service.”
Our Tax Investigation Service Can Help…
In the instance you are one of the unlucky ones chosen by HMRC, we offer Tax Investigation Service which gives you professional representation and is backed by an insurance policy that provides up to £100,000 of professional fees.
We have partnered with Croner Taxwise to provide this service as they have a proven record of assisting with these enquiries for our clients. As well as this, it also provides access to a dedicated team of HR consultants who can assist you in growing your business by providing pro-active commercial advice regarding the management and well-being of your staff.
This service starts at £85 for personal tax clients, £200 for sole traders and £315 for limited companies. And it will cover you for all manner of compliance checks or investigations started by HMRC including:
- Corporation Tax and Self-Assessment
- PAYE, P11D and National Insurance
- Construction Industry Scheme
- Capital Gains
- Furlough Claim, Income Support Schemes and other Covid related support.
If you want protection from the taxman through our tax investigation service contact us today at email@example.com. Alternatively, contact us or your client manager on 01332 207336 to ask for more information or to start your cover and get peace of mind.