Most tax enquiries are generated by computer “risk profiling” and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets. Even if you have done nothing wrong, the taxman will not give up and will still try hard to find errors.
Can anyone’s tax affairs be scrutinised by HM Revenue & Customs?
Anyone who submits a tax return can come under scrutiny. Every year, HMRC start enquiries into many thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. The aim in every case is to collect more tax. HMRC has collected £28.9 billion from tax investigations in the last year.
How much could a tax enquiry cost me in professional fees?
The questions asked by HMRC are usually very detailed and time-consuming to answer. The costs of defending you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. These costs are additional to the normal annual fees paid to us.
Is there anything I can do for peace of mind?
You can subscribe to our Tax Investigation Service which will protect you for the work and costs of defending you in the event of a tax enquiry by HMRC.
What are the main benefits to subscribing clients of this Service?
▪We will defend you, if and when you are selected for a tax enquiry by HMRC
▪The potentially high costs of professional fees for that defence will be claimed under the practices’ insurance policy
▪It will not be necessary to accept unreasonable tax charges by HMRC due to concerns about professional fees
▪You will also get free access to a 24/7 business legal helpline
Download our information booklet for more details.