So, with the increasingly complex tax environment and HMRC’s continued use of more efficient methods of checking for non-compliance, it’s more important than ever that you are able to defend yourself in a tax investigation.
The environment surrounding HMRC compliance checks has changed and, from 1 April 2009, HMRC’s powers have increased dramatically. They are now able to:
- Make inspections unannounced
- Check your records before a tax return is filed
- Demand records without issuing a formal notice
- Ask third parties to check the accuracy of information
- Investigate direct taxes, VAT and employer compliance, since inspectors have now all been cross trained
With a new penalty structure based on subjective ‘reasonable care’ clauses now available to them, HMRC has developed new tactics to collect as much revenue from non-compliance as they can. Their aim is no longer simply to open full enquiries, but to target taxpayers and convince them to comply with HMRC underpayment estimates as quickly as possible.
HMRC enquiries can be lengthy, complex, highly intrusive and stressful. But even if the result is that no additional tax is payable, you will still have to cover the professional costs incurred in handling the matter. Depending upon the length and complexity of the investigation, the fees could cost you a considerable amount of money. Indeed, it has been known for clients to agree to HMRC's demands simply because of the costs involved in continuing to fight the case.
For a small annual charge, our Tax Fee Protection Service will allow you to leave the matter in our hands, without having to keep one eye on the costs. Our fee protection service was introduced so that our clients do not have to worry about such costs.
Whether you run a business or just have a modest personal income, should you be investigated, this service allows us to dedicate the right level of representation without you having to worry about spiralling professional costs. Subject to terms and conditions, Tax Fee Protection will provide you with the equivalent of up to £100,000 of professional costs per incident resulting from an HMRC intervention, including checks into your Tax Return, PAYE, P11D, NIC and VAT affairs.
For clients with a business, included within this service is a helpline which can help you through the legal minefield of today’s business environment. A team of highly experienced consultants can support you on a wide variety of issues, including employment and personnel, health and safety, and commercial legal issues. There is no extra charge for these services; all you pay is the cost of a non-premium rate phone call.
Let us assist you